Creating New Markets: The Importance of Non-Customers

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Many managers struggle to successfully break out of red ocean competition and create new markets.
Managers often apply their existing mental models from competing in existing industries to their efforts to create new markets, resulting in failure.
Creating new markets requires talking to non-customers and understanding their needs and desires.
Sony's approach to e-readers focused on improving the device for existing early adopters, while Kindle focused on addressing the lack of titles and ease of downloading for non-customers.
Kindle's focus on non-customers and addressing their needs helped it become the industry standard and significantly increase the number of e-readers.

Blue ocean strategy is a landmark business idea, but its co-creator, Renée Mauborgne, says it’s not a guaranteed win. She discusses what specifically can go wrong when you try to implement blue ocean strategy, including the common traps managers fall into.