At SAMC, we are rather passionate about the power of Blue Ocean Strategic thinking. In fact, I recently spoke to the Pennsylvania Petroleum Association on Blue Ocean Strategy, and I was reminded how the theory, methods and tools of this unique business growth approach are so timely for an industry like this. On the one hand, consumers expect vendors to provide them with the services they need when they need them, not when vendors can deliver their home fuel or when fuel trucks can re-fill gas station tanks. On the other hand, the petroleum industry has collapsed over the past decade, shrinking from 12,000 distributors to less than 4,000. Clearly, this consolidation reflects the changing nature of the fuel delivery industry.
But it also reflects the trends that are coming next. WaWa is a perfect example: a gas station with high quality food that also sells gasoline. This dual-service model has enabled WaWa to outsell 7-Eleven stores and even McDonald’s. Its secret? WaWa realized that people want quality food fast, but don’t necessarily need a drive-up or a place to sit down to eat. By redesigning their operations, WaWa’s leadership found their Blue Ocean Strategy and out-performed the rest of the pack, which were still competing over having the best gas prices in the right locations.
What the oil and gas industry is discovering: cars are going to be electric or hybrids, now or soon
As if you haven’t noticed, the whole concept of transportation is changing. Gas stations are realizing they need to figure out how to help electric cars with 200-mile distance limits recharge their batteries, fast. Smart new innovators like Filld are becoming the Uber of gas delivery—customers respond “yes” to a text and a mobile fueling service comes to wherever they are and fills up their tank. Pretty cool innovations.
And that’s just the beginning, Homes are shifting to solar so they can disconnect from oil or propane. While wind-generated energy is still in its infancy in the U.S., Scotland is now generating so much wind energy, it could power two Scotlands. More and more, non-petroleum options are becoming very cost-effective and attractive, as well as exponentially better for the environment. So what does this mean for oil and gas?
This is a perfect time for the petroleum industry to rethink its business model and find unmet needs it can solve in innovative ways
Value innovation is the key to a new Blue Ocean. (I wrote a blog about this, which you can read here.) The petroleum industry’s leadership will have to create this, but the demand is awaiting them.
To learn more about Blue Ocean Strategy and how it can help you create uncontested market space where you are the “only,” I invite you to listen to my presentation to the Pennsylvania Petroleum Association. Just click on the image below. Please let us know if you would like a similarly-focused talk for your business or organization.
To learn how Blue Ocean Strategy can help you see opportunities that are all around you, check out these blogs and podcasts:
- Blog: Blue Ocean Strategy® Can Create a New and Uncontested Market Space
- Blog: Time for a Blue Ocean Strategy® for Companies in the Oil and Gas Industry?
- Podcast: Ask Andi—How To Find Your Blue Ocean Strategy® Step 1
Ready to find your Blue Ocean Strategy? Give us a call.
At Simon Associates Management Associates (SAMC), we are certified Blue Ocean Strategists and culture change experts who specialize in helping organizations of all sizes and across industries rethink their business strategy to find new opportunities for growth and success. Contact us to discuss how our team of corporate anthropologists can work with you to discover, develop and apply a Blue Ocean Strategy that helps your business overcome the challenges it’s facing in these fast-changing times. We look forward to hearing from you.
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