Uncontested Market Space is Blue Ocean Space. Red Ocean Space is where big fish devour small ones. If you don't find or create Blue Ocean Space, you might become someone's breakfast.

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Where big players devour
small ones.
The red is blood

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In high tech markets you must find it –
or you’ll be someone’s breakfast

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• It doesn’t matter how small you are who your
competitors are
• What matters is that your technology is
demonstrably superior

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‘ … a closer look reveals that most
[companies’] plans don’t contain a
strategy at all but rather a smorgasbord
of tactics that individually make sense
but collectively don’t add up to a unified,
clear direction that sets a company
apart—let alone makes the competition
irrelevant.’
W. Chan Kim
Co-author of
Blue Ocean Strategy:
How To Create
Uncontested Market
Space And Make The
Competition Irrelevant

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In the 1990s Apple lost the PC market
to Microsoft
By 1996 Apple was praying for a saviour
to rescue it
By then, Microsoft had a virtual
monopoly of the PC market

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 Defined a new market for cool, small devices – iPod
 Created a new revenue stream with iTunes
 Expanded the new market with iPhone & iPad
 Created a second revenue stream with App Store

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Apple Microsoft

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20 years ago IVR (Interactive Voice Response) was:
 New, custom-built & expensive
By contrast, RapidCall* was:
 Off-the-shelf but easily customised
 Feature-rich but easy to deploy
 Advanced but affordable
*We’ve changed the name at the request of the client

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• Highly profitable
• Huge customer base
• Well-established need
• Clear business benefits

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• Targeted by every global IVR vendor
• Risk Averse: won’t buy from small/local
• Easy to deploy: not necessary
• Price not an obstacle*
* To them cost effective = too cheap

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 Not targeted by global vendors
 >200 credit unions in Australia and NZ (then)
 Value for money very important
 Easy deployment, low maintenance = highly
attractive

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• National association
• Close-knit community
• CEOs know each other
• Selling by word-of-mouth

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RapidCall ended up with:
 90% of the credit union market
 A satisfied, loyal, unshakable
customer base
 A market impervious to
competitors for 10 years

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 Once you own it, selling new products to it is easier &
cheaper
 Acquisition and maintenance costs are lower = more profitable
 Competitors can’t get in

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Blue Ocean Strategy: How To
Create Uncontested Market Space
And Make The Competition
Irrelevant by W. Chan
Kim and Renee Mauborgne
Uncontested Market Space – full
post on Technoledge blog

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How we do IT marketing
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02 9909 0246 info@technoledge.com.au
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