How to create uncontested market space and make the competition irrelevant

We love Blue Ocean Strategy. It will probably make us one of the worlds shrewdest investors.

It starts with a simple metaphor: swim in the Blue Ocean to create uncontested market space and make the competition irrelevant.

But it’s not so natural to do this

INSEAD professors and co-directors of the Blue Ocean Strategy Institute, Chan and Renée, researched over 100 companies from 100 years of recent history and found that only 14% were swimming in Blue (uncontested, clear water) Oceans.

The other 86% were in the red (highly competitive) oceans, fighting over existing demand and trying to beat the competition to the detriment of their margins and profits. A bloody red ocean indeed!

The BLUE14 % – in uncontested space – made up a whopping 61% of the overall profit of the 100 companies.

But it’s not just about avoiding competition.
The magic is in the model: providing both low costs and heightened experience to your customers (value & innovation). This is something that takes consideration and discipline, either at company formation stage, or making bold shifts when you find yourself swimming with the sharks!

Untapped demand is out there. Your goal is to find it.

 

 

Renée Mauborgne
Co-Director, INSEAD Blue Ocean Strategy Institute

Now you understand the formula, this is your shortcut to working with us – show us that you can be one of the BLUE14

Very Useful Link:

Blue Ocean Strategy