Bizstartup.ie - NewsHow to pursue a 'blue ocean' strategy

One of the early challenges any start-up must face is the way in which it brings its offering to the target market place.  Being the 'newest entrant on the block' can be seen as weak position especially when your product/service wants to compete in a mature and populated space. 

But a business promoter/entrepreneur should take heart by seeing competitive waters ahead — for one this validates the need for your solution and it also proves that there is a business to be made (as others are doing) from your idea/product/service.

An example of Blue Open Strategy

One possible market entry strategy to consider is know as Blue Ocean Strategy – this is really a way of making an uncontested market space and making your competition obsolete. 

A very famous case study and example of Blue Ocean Strategy is Cirque du Soleil which is now one of Canada’s largest cultural exports.  Set up in 1984 by a troop of street performers Cirque’s production has been seen by almost 40 million people in over 90 cities around the world.

In less than 20 years Cirque du Soleil has achieved a level of revenue it took Ringling Brothers and Barnum (the global champions of the circus industry) over 100 years to attain.  Even more surprising about this achievement was that Cirque was able to achieve this growth in a declining industry.

Cirque du Soleil succeeded because it realised early that it would be a close-to-impossible feat to compete against the two giants of the industry.  Instead it decided on a tactical strategy which resulted in it creating a new uncontested market which positioned its Circus as the “only show of its type”. By slightly changing its target demography and repositioning the show for an adult and corporate audience, Cirque du Soleil achieved rapid success and growth.

This approach can be used successfully by any start-up and early stage company.  It’s always important to be creative when positioning your own product/service.  Consider the possibilities of creating a sub-segmented market for your company’s proposition – this will help your company compete in the market and can be the foundation of your pricing strategy and how you defend and explain your pricing.

Anthony Byrne is managing director of Product2Market, which was recently signed up to Dublin City Enterprise Board's mentoring panel