When introducing a new product or service based on the Blue Ocean Strategy, businesses may need help to overcome adoption hurdles that could hinder the success of the offering. Overcoming these hurdles is crucial for ensuring a smooth market entry and achieving the desired market impact. This section will discuss identifying key adoption hurdles, addressing cognitive, resource, motivational, and political hurdles, and building a strategic sequence for execution.
6.1. Identifying Key Adoption Hurdles
Adoption hurdles can arise at various stages of the product or service’s life cycle and take different forms. To effectively address these challenges, businesses must identify the key hurdles they will likely encounter. Common adoption hurdles include:
- Cognitive hurdles: Customers may need help understanding the value proposition of the new offering or may be reluctant to change their current habits.
- Resource hurdles: Businesses may need help in acquiring the necessary resources, such as financial investments, skilled personnel, or infrastructure, to support the new offering.
- Motivational hurdles: Internal stakeholders, such as employees and managers, may need more motivation or incentives to support the new offering.
- Political hurdles: External stakeholders, such as regulatory authorities, industry associations, or competitors, may create barriers or resistance to the new offering.
6.2. Addressing Cognitive, Resource, Motivational, and Political Hurdles
Once you have identified the critical adoption hurdles, businesses can develop strategies to address them:
- Cognitive hurdles: Educate customers about the value proposition of the new offering through targeted marketing campaigns, demonstrations, and testimonials. Encourage trial and adoption by offering incentives or promotional pricing.
- Resource hurdles: Secure necessary resources by reallocating existing resources, forming strategic partnerships, or seeking external investments. Streamline operations and optimize resource utilization to minimize costs.
- Motivational hurdles: Build internal support for the new offering by communicating its benefits, aligning incentives, and fostering a culture of innovation and change. Provide training and development opportunities to equip employees with the skills needed to succeed in the new market.
- Political hurdles: Engage with external stakeholders to build alliances, gain regulatory approvals, and address concerns. Develop a compelling narrative highlighting the benefits of the new offering for the broader industry and society.
6.3. Building a Strategic Sequence for Execution
To ensure a successful market entry and overcome adoption hurdles, you should develop a strategic sequence for execution. This sequence typically involves the following steps:
- Buyer utility: Ensure the new offering delivers exceptional customer value by addressing unmet needs and pain points.
- Price: Set an attractive price point within the Price Corridor of the Mass to maximize appeal to the target market.
- Cost: Streamline costs and optimize resource utilization to maintain profitability at the chosen price point.
- Adoption: Implement strategies to overcome adoption hurdles and build momentum for the new offering.
By following this strategic sequence, businesses can effectively address adoption hurdles and create a smooth path to market for their new products or services.
Overcoming adoption hurdles is critical to executing the Blue Ocean Strategy. By identifying key hurdles, addressing cognitive, resource, motivational, and political challenges, and building a strategic sequence for execution, businesses can ensure a successful market entry and achieve their desired market impact.