Blue Ocean Strategy - GharPar By: Kinzul Iman, Areeba Javed & Maria Meher Blue Ocean Strategy • Cutthroat competition results in nothing but a bloody red ocean of rivals fighting over a shrinking profit pool. • Companies should instead look for new market space and ways to reinvent the industry. • Key Points 1. The competition is irrelevant 2. Differentiation and low cost can coexist GharPar • GharPar provides a brilliant solution by bringing the spa to their home. • A female led startup with an innovative web and mobile-based solution • Allows customers to enjoy all the latest beauty treatment and services by professional aestheticians in the comfort of home. Contd. • GharPar also launched its app on both IOS and Android in Pakistan in February 2017. • It offers the following features: One-Tap access to an assortment of services. Affordable and hygienic services provided on time. Vetted professionals pampering you in the comfort and security of your home. Rating beauticians to ensure service quality. How can Competition affect the industry •Companies are in an intense rivalry with one another •Each business is striving to gain market share •This increases the advertising and marketing expenditures •All this leads to limited and divided profit margins •Sustainability and growth is also not assured How competition is made irrelevant Secured and trained Staff Expert and innovative services Home-Based Beauty Services Hygiene and Quality Standards Easily accessible and timely services Which New markets have been created Professionals • Women and men managing personal and professional lives simultaneously, hardly can get their time off for their spa time. Time savers • Time needs to be taken out from busy schedule. Cost savers • Expensive beauty treatments and services are not affordable by people belonging to different socio-economic classes. Features • Services • Punctuality is Sacred • Booking Appointments • Catering to Queries • Providing Opportunities • Engaging the Minorities Low prices for consumers • Low cost is important to attract consumer. • There are also discount strategies for customers written on their website: 15 + minutes late : 20% discount on order 30 minutes late: 50% discount on order 1 HR + late: 100% discount on order How long this is going to be a blue ocean? • Due to its unmatched services, quick response and up to date, hygienic equipment. • Scope of growing the business nationally as they are only operating in Lahore and Islamabad. • Idea can be replicated soon hence making the market competitive. • GharPar is not facing much competition and its been 2.5 years