Hey, English winners. In this short video,
I'm going to start explaining a business
concept... and this will be the first type
of video of a long series I intend to do.
it will be just short videos where I
explain one simple business idea that i
normally get from books or culture, so
that way, you can understand and talk to
other people in English about these
ideas. Blue ocean / red ocean. So, a blue
ocean...
I want you to imagine an ocean... with
sharks swimming around in the water...
eating fish right? They're eating fish,
having a good time. But one day, there are
too many sharks, right? There's too many
sharks, and not enough fish. Suddenly, a
shark has to do a lot of work just to
get one fish. The competition has become
too intense, and now they have a red
ocean. Red ocean means that there's too
many competitors in your industry, and it
is harder to get the business you need
to survive.
Now what do many people do to defeat a
red ocean environment? They either become
the best in that ocean or they'll go to
what's called a 'blue ocean.' Now a blue
ocean is the opposite of a red ocean. A
blue ocean is where there are very few
competitors and a lot of customers, and
sometimes your in a red ocean
environment, and you need to look for
blue ocean opportunities.
Sometimes, that means changing your price,
or aiming for a certain type of
customer, so that it will be easier for you
to reach than if you tried to just get
everybody in a big group. So here's a red
ocean story: i'm in Korea right now, and
in Korea the Koreans - just like me - love
their fried chicken.
I mean they go CRAZY for fried chicken,
and there's more restaurants that are
fried chicken, I think, that, like, in
the other restaurant in the country.
there's about 40 or 50,000 chicken
restaurants in the country.
it's insane. But what happens is: I walk
around a town, and maybe within two city
blocks,
I'll see five, six, seven... TEN different
chicken restaurants, and so the average
Korean wanting to start a business will
look at the two-block area with 10
chicken restaurants, and think: 'all the
chicken restaurants are here. This is the
perfect place to open my chicken
restaurant!' But an American would think:
'NO! Do not open your chicken restaurant
where there's ten other chicken
restaurants.' You go someplace where there
are... maybe one chicken restaurant, or zero, and
there's a lot of customers who want
chicken; that's a blue ocean environment.
So you do not have to compete with nine
other chicken restaurants. Now here's an
example of a red ocean environment where
someone created a blue ocean
opportunity. I believe his name is Herb
Kelleherr... but this is Southwest Airlines.
Now, in the seventies, most airlines in
America went from one side of the
country to the other. They are very
expensive. It was expensive to get a
ticket, and they did business a very
specific sort of way. Now Southwest
Airlines came on the scene, and what
happened?
They competed with the trains and the
buses and the airline companies, by
making cheap tickets that just cross
maybe... one fourth of the country, or
one half of the country... maybe just
crossing a couple state lines. This bit
into the big airline companies'
businesses, and they didn't like it very
much, because Southwest Airlines was able
to sell tickets at a much lower price to
a different kind of customer... but
sometimes it took customers away from
the big airlines, because southwest said:
'We're... instead of meeting ALL these needs,
we're just going to meet THIS need,
and we're going to charge much lower
prices to do it.' So that's it for our
blue ocean / red ocean explanation. If you
like this video, please SUBSCRIBE to get
more videos like it. I'll be seeing you
later. In the meantime, you can check out
my listening comprehension playlist, and
the idioms playlist that i'm continuing
to add to right now.
See you later!
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