A handful of products and services were used in isolation,
other products and service offerings affect the value of most. In red oceans,
rivals necessarily compete within the frame of the industry’s product and
service offerings. Value additions are often hidden in complementary products
The key is to devise a strategy that can increase the value
proposition of the company, making use of the value of complementary products
and services (Kim & Mauborgne, Blue Ocean Strategy: How to Create Uncontested
Market Space and Make the Competition Irrelevant, 2005).
According to Randall (2015), blue ocean strategy
is about getting the customer offering right before anyone else by generating
value through innovation. A blue ocean strategist gathers insights on
reconstructing market boundaries by investigating noncustomers, not by looking
at existing customers.
A blue ocean strategy was not just about being a pioneer of
a market and innovation. It was about being the first to do something right by
creating value through innovation. A look at the technology giant Apple’s
products is proof enough for this – none of Apple’s top-selling products have
been the first in their respective categories. Yet the products successfully
linked innovation to value (Medium, 2015).
According to Medium (2015), in most blue ocean
cases that heavily involved technology, like Apple’s iPhone, Intuit’s Quicken
and Salesforce.com, the success of what these offered depended comparatively
less on technology, and more on the fact that customers perceived these offerings
to be simple, easy to use, fun and productive. Thus, when technology is
involved, it is critical that it is linked to value by defining how a product
or service facilitates a leap in productivity, simplicity, ease of use,
convenience and fun.
Companies in most cases mistakenly assumed that successful
blue ocean strategies revolved around cutting-edge technologies. These
businesses generally drove towards developing new products and services that
are too farfetched, too complicated or lack the required complementary
environment to unlock a new blue ocean market (Medium, 2015). So, the authors agreed that there
should be a balance between technology and what is being offered, for a blue
ocean strategy to succeed.
Kim and Mauborgne (2015) stated that,
technology, when involved, should be linked to value by defining how the
product or service provides a leap in productivity, usability, simplicity,
convenience and fun, regardless of how advanced technologically the product or
service is. Value innovations, not just technology innovations, are responsible
for opening commercially tempting new markets.
A look at Sri Lanka’s current state with regards to the use
of smartphones and internet revealed some facts, important to support the case
on the success of PickMe. According to statistics, the ownership of desktops
and laptops in Sri Lanka has fallen drastically in the first 6 months of 2016,
compared to the same period in 2015 because of the increase in smartphone and
tablet use (Wettasinghe, 2017).
The increase in smartphone use has been evident with the
increase in internet and email use across households, which was 15.1 percent
and 8.6 percent across all types of devices in the first half of 2016. As per
the Census and Statistics Department, this is an increase from 11.8 percent and
a drop from 8.8 percent in the same period in 2015 (Wettasinghe, 2017).