PBD and the Biz Doc Interview the authors of one of their favorite books, W, Chan Kim and Renee Mauborgne, Blue Ocean Strategy Authors. In this heated interview, they discuss Capitalism, ESG, and Politics.
Order Your Copy of Beyond Disruption:
bit.ly/3NwHxZx
Order Your Copy Blue Ocean Strategy:
bit.ly/46uC1Q7
Get You Tickets for The Vault 2023 NOW ⬇️⬇️ The BIGGEST EVENT in VT History!
**TOM BRADY, MIKE TYSON & PATRICK BET-DAVID on one stage!**
https://thevaultconference.com/
FaceTime or Ask Patrick any questions on
Subscribe to our channel:
To reach the Valuetainment team, you can email:
This blue ocean applies to everything Too in the book your next five moves I Talk about how everybody has to find a Blue ocean it also applies to branding On social media how you separate your Message from others media how Tick Tock Instagram Twitter in every possible way One has to be thinking about blue ocean Uh again I I it's such a day-to-day word I use referencing your book if I run Into somebody that hasn't read Blue Ocean strategy I'm confused on how you Haven't read this book yet because it's That much of a revolutionary book so I'm Going to keep selling for as long as I'm Around I'm gonna do my part to sell but Let's continue with a couple different Things you know um Into Beyond disruption you know the Concept of non-disruptive creation which Is something you guys talk about a lot And which involves you know creating new Markets without destroying existing ones And is argued to be equally important And potentially more advantageous and You give an example of non-disruptive Creation is exemplified by Innovations Such as microfinance life coaching Viagra crowdfunding smartphone Accessories which expanded the economic Pie without displacing existing Businesses now we're all capitalists and As capitalists you know the one thing About capitalism is
There is a competition there is market Share there is you know Your smaller company you get into the Marketplace and barrier to entry you Know the bigger guys have 42 percent of Markets you're 31 and now you're going To come in you're going to take three Percent of it they're not happy about it Now it's seven percent now it's 11 they Went from 31 to 20 they're now upset Their board is complaining what do we Need to do not their then there becomes Competition right then there's a battle There's a fight in the board meetings They're talking about your company and What do we need to do to address this You know so how do you compete without Competing in a capitalistic Society Patrick so first of all it is very much A capitalist idea of course and so let Me back up one is we are never you know Even in Blue Ocean what we're never Saying is don't compete and only create Right in reality businesses both you Have to compete and create you create This blue ocean you can other people try To jump in you have to compete so you Need to do both the premise of being Non-disruption is hey everyone is Focusing on the field of innovation is Disrupt this disrupt that take on this Existing industry as though when you Take on an existing industry the Industry is going to say oh yes welcome
Come on in please take the baloney off Of my bread I'm gonna sit back and relax But of course that's not true they're Going to sit and punch you right smack Right back And what we're saying is well wait a Minute that is certainly one opportunity And believe me if you have an industry That's asleep at the wheel that is no Longer effective it has a lot of Negative externalities and I know Patrick you've spoken a lot about you Know some of that that you see in the News media industry it's not as Effective as it could be then maybe Disruption is absolutely the path right So we're not saying it's not what we're Saying is why are we shielding ourselves From thinking about these opportunities Where I can create these billion dollar New markets and not have to go against The big guys and create them outside of Existing Industries and that for us is The opportunity why should I compete or Disrupt you and take on you when I can Just sidestep over to the right and I Can up open up potentially this new Market that everyone has been ignoring Where I actually have no competition at All and there is no one I need to Disrupt and displace And the premise of the book is why Aren't we having a conversation on that Why is that overlooked because that is
Really where you know economics and by The way Increasingly what we would say is social Good can be manifested because I'm not Displacing people And if you think that's not important You just be one of these recent Tech Executives that are being left getting Losing their job every single day Nowadays and when you're on the other End of that that hurts so that's that's Our premise there Patrick is that Possible don't like it can I have Something to talk about It of course listen a man in a blue Ocean who's not in a red ocean always Has the mic so yes please Okay so what what I wanted to have is That for example just give one specific Example Ocean liner Atlantic Ocean across from New York to London all this that's huge business at The time and you know Vincent Churchill Even said that that is where all the IPS And Troopers moving around And during the war so it was really Awesome all of a sudden Chat Invented it's flying over the sky So now ocean Minds in trouble So Tell the trouble disappear Organizes struggling
So therefore they are disrupted Some people are losing jobs they're Shrinking their business Now of course there are two options to It one is fight back getting past the Airline business Or taking any other chat Travelers which Actually one company tried to do but They realized soon He has a huge pushback Is because of Regulation they just Always be kind like uh obviously it's Nice to hear You know they take on Reliance Goliath Always be a huge impact of resources Never easy to disrupt the big cards Because Italian so what happened Is that this company says hey Why you need to eat this up bad personal Right And we have these ships Why do you change the concept to create Non-disaptive creation reading without Disruption meaning okay make their Competition irrelevant by having Vacation yet scene obviously Or July in transportation means from New York to London for example because why Should we in that business anyway the Business is disrupted and doing Now we want to use the same clip Different modification to get the huge Business Tourism again
Meeting without destruction whatever Not a new jobs came in You know and then so many people excited Obviously when you see the cruise during Industry today 200 U.S He created jobs without disrupting Anyone new excitement new pleasure new Progress well you bought a cruise You would equal thing to do but this is A good example of creation without Disruption approach Same explosion why you compete upfront Why you have a fight with the sharks Just let's go and create Similar principle why do you deserve Go to create without disruption then Disrupting creation so that you have Your own Market When you look at the plugin Zone Approach blue ocean relationship Beyond disruption as common denominator Thinking about partisan thinking that's One number two most importantly Under the capitalism we are not in the Illusion to the socialistic quiz what Happened Today whether you like it or not Realities you should make the money on The way And help also stakeholders you cannot be Selfish making money only against the People's happiness but this mood is Coming up and you hear about talking Stakeholder capitalism all the same now
Even though put the question on Milton Friedman who is believing in show the Maximization of only God so he asked Questions and Friedman one of these Economists of the 20th century and said Well If you maximize the share of your owners Society will take care what's up this is An outscope of the company But that's not true That we have a lot of issues for metal Externalities which is Cost of society happen like emotions and Inefficiencies unhappy people losing the Jobs as well is no longer a choice we Need to accommodate somehow economic Growth at the same time you should be Seen a good cities around the world to Be acceptable especially perhaps you Know In this MJ generation it's very Sensitive That all these big people just make Money against people's happiness they Just object that How can you simultaneously like we did Inclusion Simultaneous Same thing simultaneous but economic Growth And Cooper Society This is the main Question why notice of the creation is Not really
But also that's way to go to the new Capitalism to thinking differently Rather than you know only Google Society Do I have your permission Can I push back can I push back yes okay I want to push back and and I'm curious To know what you say about this so you Know as an operator when you're in it And uh the last three or some weird Things happened as an operator being in It so one you know uh making money Against people's happiness right and We're all capitalist and uh all of a Sudden the last three years when the Market started forcing everybody to work From home You know we started being bullied by Employees who were coming and saying if You don't double my salary and allow me To work from home I'm gonna go somewhere Else so they started doing that to us The employers and I would say listen guy It's not a good idea for you to do this Because in three years you can have a Resume with four different jobs and Nobody wants to have somebody for the Most part that has four different jobs In three years because you get around And that says you don't stay with one Company no but these guys are offering Me 120 and you're only paying me 65 and They're offering me 120 plus working From home I'm taking it great so that Was the war then they took it year went
By they got fired they went from that Company to another company that I paid In 145. they went to another company That I paid in 155 and then the market Realized you're only worth 65. and then They couldn't get a job for six or 12 Months and now they're bitching Complaining about the fact that they Can't land their job they're upset but Now the employer who is now still there And they're now sitting there saying Look look what happened to the market I Can't afford to pay that now the Employees coming back with the following Line look I made a mistake I always love You guys and you know you guys were the Best and you know I made a mistake Leaving you know I had to leave it was Almost like the perfect thing God sent Because I had to leave to realize how Amazing you guys are and I miss you and Even my wife talked about it and we were Crying together anyways now we hear the Sob story okay as an operator if I told You this happened to me 10 times it's a Small number but here's the part That I I wonder how you guys uh can do This you've been successful in the past So I know you can do it I'm wondering How you're able to make that shift with The mindset is when the when the selfish Gene Is linked to an incentive which is what Makes capitalism work
You get incentivized to building a Company and doing it better than the Other guy did it and for that you get Compensated maybe you go into the public Market you sell private etc etc you get Equity you sell million dollar exits Seven million dollar Exit 42 million Dollar exit billion dollar exit and People get paid and in the selfish Gene Where employees are sitting there saying Look if I get a better offer I'm leaving How do you prevent both The Operators The founders this you know the guys that Started a company as well as the Employers to set aside the selfish Gene To not just do what's best for them and Do what's best for the marketplace Because right now you know the whole Thing that's going on with AI musk and Wozniak are saying slow down pump the Brakes on AI and the other side is Saying you can't stop pump the brakes on AI because they're going to continue Doing it so how do we prevent that how Do we manage those the motives of Selfish genes 10 let me go So one thing you know Patrick just set Back one thing is about your employees You're discussing and I appreciate your Challenge there and I appreciate you Just talk to them very directly and said Listen this is what I can do it doesn't Make economic sense for me to do
Differently and if you need to leave You're going to leave and I'm gonna hold To my principal and I know how to run a Business and that's what I see and so Maybe some left maybe some are coming Back that's a separate issue but beyond Disruption what we're talking about They're non-disruptive creation it's not Asking for any sacrifice of your Economics the power of it is is that in Your very pursuit of economic good Beyond existing industry boundaries You're able to achieve economic and Social good at the same time because I'm Not displacing others in the marketplace And so it's not a trade-off of one or The other you know historically we think About Um you know doing social good or Corporate social responsibility it's a Cost function for an organization Naturally when times get tough that Money gets shrunk you have to because You're in survival mode then so that's Natural and so it's a trade-off one for The other what inspired us about when we Saw this non-disruptive opportunity Is the ability to achieve both at one Time now And then Chan maybe take it from there Because you know your question for me is A little bit on the employee side you Know I commend you for what you did There
Um having that honest conversation I Think the real key there is you know a Concept that we discuss as well is Called Fair process being direct with Your employees about what you can and Cannot do and why in holding for it so I Guess that might be my perspective there And the individual is going to do what They're going to do depending on You know their bias and their Opportunistic action so if you like this Clip and you want to watch another one Click right here and if you want to Watch the entire podcast click right Here [Music]
