Unusual concepts improve your thinking by making it unique. Here are 10 unusual business examples. … [+]
1. Blue Ocean Strategy
The blue ocean strategy is to create a new market space without competition, i.e., a “blue ocean,” instead of competing in a highly competitive market, i.e., a “red ocean.” This concept emphasizes value innovation, where companies simultaneously pursue differentiation and low costs to develop new market space. A classic example is Cirque du Soleil, which created a new entertainment category by combining elements of circus arts and theater, attracting a completely new audience.
2. The Long Tail
The concept of the long tail, popularized by Chris Anderson, suggests that businesses can achieve greater profits by targeting numerous niche markets, rather than focusing solely on mainstream products. This is especially true in the digital age, where distribution and storage costs are low. Companies such as Amazon and Netflix take advantage of the long tail by offering a wide range of products and content that appeal to niche audiences.
3. Disruptive Innovation
Disruptive innovation, a term coined by Clayton Christensen, describes the process by which a small, resource-limited business successfully challenges an incumbent by targeting an overlooked area or offering a simpler, more affordable solution. Disruptive innovations can upend an industry, such as how Netflix disrupted the video rental market or Airbnb transformed the hospitality industry.
4. Reverse Innovation
Reverse innovation refers to developing an innovative product or service in an emerging market and adapting it for use in a developed market. The concept recognizes the potential of emerging markets to become hubs of innovation. For example, GE Healthcare developed a portable, low-cost ultrasound machine for rural areas in India, which was later adopted by the US market due to its affordability and convenience.
5. Late-mover advantage
While first-mover advantage is often celebrated, late-mover advantage shows that being late in a market can actually be beneficial. Late-mover companies can learn from the mistakes and successes of early movers and improve on the original idea with better execution, technology, or marketing strategies. For example, Facebook was not the first social network, but it improved on the ideas of early movers like MySpace and Friendster to become the dominant platform.
6. Jobs-to-be-done theory
The Jobs-to-Be-Done theory, proposed by Clayton Christensen, focuses on understanding the “jobs” customers are trying to accomplish with a product or service. By identifying and accomplishing these jobs, companies can create products that better meet their customers’ needs. This approach shifts the focus from demographics to the actual tasks customers are trying to accomplish, providing deeper insights for product development.
7. Lateral thinking
Lateral thinking, a term coined by Edward de Bono, means solving problems through an indirect and creative approach. It involves looking at a situation from a new perspective and using unconventional methods to come up with innovative solutions. Lateral thinking helps startups break out of traditional thinking patterns and discover unique opportunities and solutions. For example, lateral thinking could help a company identify new markets for an existing product by rethinking its uses and benefits.
8. Network Effects
Network effects occur when a product or service becomes more valuable the more people use it. This concept is important for technology startups, especially in social media, e-commerce, and online marketplaces. For example, Facebook’s value increases as more users join and interact with the platform, creating a powerful network effect that attracts even more users.
9. Open Innovation
Open innovation is the effort to source ideas and solutions from external sources, such as customers, partners, and even competitors, rather than relying solely on in-house research and development. This approach can speed up innovation, reduce costs, and tap into a broader range of knowledge and creativity. Companies such as Procter & Gamble and LEGO have successfully used open innovation to collaborate with external innovators and communities to enhance their product offerings and drive business growth.
10. Conscious Capitalism
Conscious capitalism is about conducting business in a way that benefits all stakeholders, not just shareholders: employees, customers, suppliers, society, and the environment. This approach can enhance a company’s reputation, foster customer loyalty, and attract top talent. Companies such as Patagonia and Whole Foods Market are known for their conscious capitalism efforts, which incorporate ethical practices into their core business strategies. Conscious capitalism also ties in closely with the philosophy behind the trend toward benefit corporations.
