Newsdelivers.com – In this modern era, the business world is filled with various competing business fields. In fact, several industries with the same product or service have now become common sights.
CEO & President Director, PT Sasa Inti, Rudolf Tjandra in his latest article said that the conditions of competition between two or more industries fighting for the same market share are called red oceans.
This method is defined as a market space whose industry boundaries have been defined and known. Usually, the players of the red ocean method offer more or less the same benefits to consumers.
The red ocean contains a common competitive structure with companies constantly trying to outperform each other. Red oceans also usually apply the ETIC vs EMIC strategy to achieve a larger share or demand. The difference between ETIC and EMIC refers to the two traditional strategies used to study phenomena in different cultures.
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Rudolf says, specifically, ‘etic’ refers to research that studies cross-cultural differences. While ’emic’ refers to research that completely studies one culture without (or only a secondary focus) across cultures.
In competition, companies often try to do price wars with each other. This often results in reduced profits and growth due to lack of differentiation. It is reasonable to consider that in the red ocean market, the level of product innovation is low.
On the other hand, there is the blue ocean method which is a relative market space and is not affected by competition. In blue oceans, competition is irrelevant because the rules or barriers to market space have not been established or are often waiting to be established.
Therefore, this researcher & transformation specialist said, to turn red oceans into blue oceans, companies must satisfy consumers better. The trick is to create innovations that are supported by a complete understanding of consumer needs, both functional and emotional.
Rudolf added that one example is what Sasa Inti does. The Covid-19 pandemic has given more awareness to the Indonesian people about the importance of products that are easy to consume, affordable, and delicious and healthy.
Sasa Inti, as a company with more than 5 decades of experience in the Indonesian market quickly identified this need. Sasa Seasoned Flour is now enriched with vitamins and minerals, while Sasa coconut cream also features Omega 3, 6, and fiber.
Sasa Inti is a clear example, by being flexible, companies can easily adapt to external changes such as consumer demand and trends. In this way, Sasa Inti managed to swim across the red oceans and emerged in the blue oceans as well as being the first initiator.
By being the first initiator, companies can benefit such as low costs and economies of scale. It is important for companies that are the first movers to take advantage of these advantage opportunities as much as possible because competition will soon follow.
Finally, Rudolf suggested that instead of always adapting to new trends, it is better to try to form new trends. That way, companies can create untapped market space. Companies also need to find trends that are observable today and look at the big picture and see the value those trends will have in the future.