Today I will Do What Others Won't
So Tomorrow I Can Do What Others Can't

Are YOU Ignoring Your NON Customers at your Peril? – Lessons Blue Ocean Strategy Can Teach us.

Is your business thinking in terms of Creating Uncontested Market Space or are you paying too much attention to what your competitors are doing?

Marketplaces today are overcrowded and prone to competing simply by slashing prices in a never-ending cycle down towards bankruptcy. – Brad Sugar, world-class business coach states that “The QUICKEST way for a business to go OUT of Business is discounting.”

Some people claim that niche markets are where you can gain value but the reality is by doing this you are just constricting your potential customer base. True visionaries in business need to find ways of breaking out of these constricting markets and create a new demand that is more profitable for them and provides more value to their customers (and non-customers).

Are you bound by the preconceived limits or boundaries of your industry?

The trouble is, we as faulty human beings often think that our marketplace is bound by rules, rules that our marketplace has set up simply to define the limits of the marketplace.

The fact of the matter, however, is that these rules, these boundaries, these limits are just vaporous imaginings put there by our industry and there is no reason as to why we should stick to them. (Provided they are not regulatory).

Wine, You’d think that was a pretty constrained industry right? Here’s why it’s not.

For example, the wine industry competes on what is effectively wine snobbery:

  • History of the vineyard,
  • Complex Flavors
  • Terminology understood ONLY by a hidden class of people that know about wine

And then there is the rest of us that buy it because the bottle looked good. (Me Included)

Yellow Tail in Australia turned the industry on its head by refusing to be bound by the “rules” of the marketplace and instead created, marketed and sold wines that had all the snobbery removed or reduced and created a fun product for people to buy.

As a result, they had RTD and Beer drinkers coming across into the wine fold that previously would have never wanted anything to do with wine and they also claimed large swathes of market share from their previous competitors.

Yellow Tail took in NON Customers with their Blue Ocean Shift and provided a lift in value at lower cost than their competitors.

Value Innovation, The Model YellowTail Wines Pursued

True growth in business comes from making our non-customers, customers and our fringe customers sticky and we do this through a process known as value innovation.

Value innovation rests on three core principles.

1.     Greater Value to the customer

2.     It reduces the cost to the customer

3.     It is more profitable for you

If you don’t meet all three you will not be moving into uncontested market space.

If we look at principle one and two these are brought about by you acting on them by doing the following:

To Reduce Cost to the customer you must eliminate or reduce the factors an industry competes on (like yellowtail above).

To increase value to the customer you must raise or create elements that the industry has never offered before. Over time, costs are reduced even further as the scale of economies kick in due to the higher sales volumes that occur as a result of delivering superior value at a lower cost to the customer.

Comparing the Old way of Strategy to the New Blue Ocean Method

As you can see from the table above, Blue Ocean strategy differs significantly from old strategic methods that simply focus on what you can do about the competition.


Creating a Blue Ocean of demand for your business is imperative if you want your business to stay profitable in the long term. While old strategic methods are important to keep your business afloat, they should not be your only focus.

Creating uncontested market space in old established industries may seem hard or even impossible but with the right strategic thinking, you can build whole new industries that have long-term profitable growth and are extremely hard to replicate before you have established significant market share.

The Finish. DFTBA.

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