In W. Chan Kim’s book entitled Blue Ocean Strategy, he discusses how to “create entirely new market space and make competition irrelevant.” While existing markets (Red Ocean Markets) will always be important for large corporations, the ability to seize entirely new Blue Ocean Markets by changing the rules of the game, ensures a period of reduced competition and high margin opportunities. The ability to create new industries where none previously existed is the true mark of innovation. For many years, corporate strategists have focused on competing head to head in existing markets with existing competitors. More increasingly, globalization is forcing business strategy to consider entering uncontested space with new products and services where there is no competition.
HBS Consulting has recently helped several large organizations create new product and service offerings and have helped to architect the needed infrastructure to move towards Blue Ocean Markets. While this can be a high risk strategy, it leads to true competitive advantage.