As much as we’ve learn about value innovation in this series of posts, blue ocean strategy implementation doesn’t rest exclusively in value innovation. It requires more than that.
Sustained success is only achieved when internal and external people are involved in execution and a sustained profit proposition is supported. There has to be alignment across value, profit, and people.
Finer segmentation has been emphasized in all areas of marketing and entrepreneurship. For start-ups, establishing that “beach head” as mentioned in Crossing the Chasm: Marketing and Selling High-Tech Products to Mainstream Customers by Geoffrey A. Moore is certainly key to success. However, as a start-up or established company defines its products, offerings, or services, a strategy that serves to desegment markets and look across key commonalities of buyer groups is very important.
Let me provide an example. The Tesla Cybertruck. Tesla’s desegmentation of the pickup market is targeted across commonalities of multiple buyer groups. Think eco-friendly buyers, think recreational truck owners, you know, the all hat, no cattle types who love their F-150’s and never get a scratch on them, and then the work truck owners. With a 3500 pound payload and a towing capacity that could drag the F-150 like a pull toy their will be work truck buyers. The Cybertruck is expected to have 0 to 60 mph times of 2.9 seconds beating the Porsche 911.
So here you have an example of a product designer looking across an entire swath of buyer groups and doing what Eddie Yoon and Christopher Lochhead call category creation. With a structured approach to asking questions, implementation, and involving internal groups and external groups, you may be closer to category creation than you realize.
If these topics interest you, hit me up to discuss them anytime. No obligation or strings attached. I’m in relationship building mode at present. It’s hard as hell to close business at present. Decision makers are in cost cutting mode. You may be as well.
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Sherman G. Mohr is an Insead Certified Blue Ocean Strategist. He’s Nashville based and serves as co-founder of a couple of cool companies.