Blue Ocean strategy tells you where to sail. Category design is what gets customers to follow
Every industry eventually becomes highly competitive. Competitors converge on the same customers, chase the same features, and compete on the same handful of variables until the water turns bloody with discounting and diminishing differentiation.
This is why category creation seems to be a big topic now in marketing circles. Category Creation is the effort to reframe the problems customers face, and therefore define the solution set (language and buying criteria) to dominate the new space.
Renée Mauborgne and W. Chan Kim in 2005 wrote Blue Ocean Strategy, offering the idea that instead of competing in a highly competitive space (a red ocean), companies should find or create a new one, a blue ocean, an uncontested market space where there are no competitors.
Both Blue Ocean and Category Creation are concepts that guide us towards new categories or spaces to avoid competition. Category creation approaches the problem a more from a positioning perspective, while the blue ocean approach has focused more on innovation strategy. However, as I make the case in my book OutPosition, Strategy, competitive differentiation and Positioning only work effectively when they work together as a system, with each of these three elements reinforcing each other.
Continue reading “The Real Way to Escape a Competitive Red Ocean: Own the Category”
