BUILDING BUSINESS WITHOUT COMPETITION

Companies typically compete not only with other companies in its industry, but also compete with companies in other industries that produce alternative products. Products include goods, services and ideas. Alternative products is broader than simply the substitution of products or substitute products. Product substitution has a different shape, but the same functions and benefits. While alternative products include products which have different functions and forms, but the same goal.

Items such replacements, we're making our company's financial statements, it can use financial software, hire a professional accountant or use a ballpoint pen and paper. Financial software, professional accountants and ballpoint has a different shape, but serve the same function.

Alternative products such as cinemas and restaurants. Cinema offers visual entertainment, while the restaurant offers a pleasurable dining functions and chatted desempatan. Cinemas and restaurants have different forms and functions, but has the same goal, namely to enjoy a walk or enjoy a different atmosphere in the house. Cinemas and restaurants is not a replacement product, but an alternative product.

NTT DoCoMo, a Japanese telecommunications can create a market without competitors with alterntif products. NTT DoCoMo created this market by thinking of an alternative mobile phone and internet. What is the advantage the Internet than cell phones and what the benefits of the Internet than cell phones? Internet excellence, offering a wide range of information, including e-mail facility, information such as news, weather, phone directories and entertainment such as online gaming, music and TV on-line. High price weakness from the internet and rental of computer hardware, a flood of information, difficulties in the process of connecting to the internet and the fear of credit card information electronically. While the benefits of cell phones is high mobility, voice transmission and ease of use. NTT DoCoMo combining the two advantages of mobile phones and the Internet by launching i-mode phone. Although i-mode phone is more expensive around 25% of cell phone, but still cheaper than a computer and a higher mobility. Billing services as simple as all services billed lepada Internet users in the same monthly bill, while eliminating concerns of misuse of credit cards used on the Internet. I-mode service is automatically activated when the phone is alive, so do not bother to log on.

I-mode service was launched in 1999 and at the end of 2003, the number of i-mode subscribers had reached 40.1 million and revenue from data transmission, images and text jumped from 295 million yen ($ 2.6 million) in 1999 to 886.3 yen ($ 8 billion) in 2003. This service creates a new market without competitors by attracting young and old population and the change that had just consumen use voice services to consumers who also use the data transmission. Kim and Mauborgne call it, the strategy of NTT DoCoMo's done as a blue ocean strategy.