The best market for your product probably doesn't exist yet, says a new book, Blue Ocean Strategy.
After studying 150 examples of innovation, the authors W. Chan Kim and Renee Mauborgne discovered that ultra-successful companies are ones that create new territories (or blue oceans) for their products, rather than competing in existing markets (red oceans) by trimming prices and profits to gain market share. The book cites dozens of prime examples, in both low- and high-tech industries. For instance, Casella Wines lured non wine drinkers into the market with its Yellow Tail brand of moderately priced bottles of shiraz and chardonnay, while Cirque du Soleil targeted theatergoers as its audience instead of duking it out in the circus industry.
DARREN DAHL is a contributing editor at Inc. Magazine, which he has written for since 2004. He also works as a collaborative writer and editor and has partnered with several high-profile authors. Dahl lives in Asheville, NC.