How I Built This with Guy Raz Less competition, more creation with Renée Mauborgne
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Apr 4, 2024 Renée Mauborgne, an economics professor at INSEAD and co-author of 'Blue Ocean Strategy', discusses innovative business strategies that encourage entrepreneurs to create new market spaces instead of competing for dominance in crowded areas. She highlights examples like Cirque du Soleil and Tesla, advocating for unique value delivery. The conversation also touches on non-disruptive innovation as a solution to job displacement in the age of AI, aiming for a balance between profit goals and societal impact.
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Red Ocean vs. Blue Ocean
- Red oceans represent existing, competitive industries where companies fight for market share.
- Blue oceans are untapped markets where businesses can create new demand without direct competition.
Cirque du Soleil: A Blue Ocean Example
- Cirque du Soleil reinvented the declining circus industry by offering a unique, high-value experience.
- They didn't benchmark competitors, instead creating a new market space and raising the price point.
Tesla's Blue Ocean Strategy
- Tesla created a blue ocean by focusing on electric vehicles when established automakers weren't.
- They prioritized dropping costs and expanding market reach without compromising style or quality.
