You can make your competition irrelevant by understanding what target customers ultimately want. If your offering is nothing more than an imitation or incremental improvement of your competition, then you are stuck treading water in a red ocean. But if you can clearly distinguish yourself and deliver superior value, then your competition becomes irrelevant and you will be in an uncontested Blue Ocean.
See how it pays to create your own market, via Business2Community:
Blue Ocean Strategy, a best-selling business book, makes a cogent argument that creating new markets known as “blue oceans” is better than competing in overcrowded industries known as “red oceans.” The authors, W. Chan Kim and Renée Mauborgne, studied 150 strategic moves spanning more than one hundred years and 30 industries for their book. They also looked at 108 companies that launched new businesses to quantify the impact on revenue growth and profits of creating blue oceans. Kim and Mauborgne’s findings are remarkable:
We found that 86 percent of the launches were line extensions, that is, incremental improvements within the red ocean of existing market space. Yet they accounted for only 62 percent of total revenues and a mere 39 percent of total profits. The remaining 14 percent of the launches were aimed at creating blue oceans. They generated 38 percent of total revenues and 61 percent of total profits.
Thought-provoking research findings, indeed. Are you already creating your blue oceans?
[Image via Flickr.]