37
Chapter 4
Getting into the Details
ofthe Inside-Out Theme
All organizations today are worried about competition in the industry
because almost all competing companies provide similar products and
services. To get ahead in the race, any project discussed with a customer is
accepted without paying attention to the details of what the customer actu-
ally wants. Even if there is only a narrow match of the service provider
organization services to the customer needs, they are sold aggressively to
the service receiver organization. One of the core reasons for this is because
all of these organizations are in competition in the red ocean, and everyone
wants to maximize their business without thinking about the side effects of
such an act. Winning a contract in a red ocean is quite difcult to predict
because the factors determining the win cannot be determined easily and,
most of the time, predictions go wrong in a red ocean. Some organizations
win contracts in a red ocean by quoting to customers that they have every-
thing the customer needs, some with the good work they have done in the
past, some with relationships, some with their organizations brand value,
some win because of a major cost advantage they provide to their customer,
and so on. However, the success of such a win in a red ocean is never
consistent and permanent. I have come across several cases where an orga-
nization has won a major deal in the rst year and, in the second year, these
contracts were transferred to another provider; the reason for such a shift is
not known in many cases. Although success can be demonstrated initially,
the failures emerging from competing in a red ocean always affect long-term
growth, sustainability, and customer relationships.

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