Competition Becomes Irrelevant Beyond Existing Industries

Your growth potential is limitless if you overcome the notion that you compete in a market.

With a mindset of abundance, you realize that the business universe consists of more than one kind of markets.

In Kim and Mauborgne theory two kinds of markets to be exact: red ocean markets and blue ocean markets.

Red oceans represent competitive or market competing strategies. As a red ocean player you do everything to outperform rivals and grab a bigger share of existing demand.

By contrast, if you strive for a market creating strategy, a blue ocean strategy, you create a new market that is un-competed or define a new category from a demand-side perspective.

“Most blue oceans emerge when a company alters the boundaries of an existing industry”, or as Drucker would say a type 2 innovation where you either attract a whole new group of customers or your biggest competition is non-consumption.

Lessons Learned: “When you break the bounds of existing industries, competition becomes irrelevant.”