Creating New Markets

Tuesday, 30. October 2018

I have commented on several occasions examples of the application of the blue oceans strategy. A reader has made me a query on the matter, so I’m going to try to explain a little more in detail what this technique the blue oceans strategy is based on this idea: the best to unseat competition is no competition. How can you get this? Leaving compete where are everyone, and looking for Virgin markets. Professors of INSEAD, Renee Mauborgne and w. Chan Kim explained his theory in a book that became one of the biggest best-sellers of recent years.

The idea is the following, most of the companies usually fight in red oceans, dyed blood by bites that are asestan some others, to gain market share at the expense of others. The authors underline that in this situation it is difficult to build a long term strategy, since it is difficult to sustain growth in a very competitive situation. To create an ocean Blue, you can discover a new sector hitherto inexistent, or extend the limits of a red ocean, to create a completely new product. In the first case, we can consider the example of eBay, which created the online auction market, and for the second we could consider, for example, the case of Nintendo’s Wii, than in the competitive world of consoles, decided to position itself in gameplay for any type of public, rather than continue the battle for higher throughput and better graphics. How can blue ocean I find? It is important to look a bit beyond the usual borders of the company. What do we do? The director general of the Real Madrid, Jorge Valdano, explained it very well, in full maelstrom by the recent signings (Cristiano Ronaldo, Kaka) media: El Real Madrid is in the entertainment industry. There are many ways to achieve that the offer that the company makes to its customers is unique and different, the world of fashion offers many examples.