Documents/BOS/3: Reach

3: Reach

Reach beyond existing demand

Other Information:

[To] maximize the size of the blue ocean you are creating ... reach beyond existing demand... challenge two conventional strategy practices. One is the focus on existing customers. The other is the drive for finer segmentation to accommodate buyer differences... To maximize the size of [the] blue oceans, companies ... need to look to noncustomers. And instead of focusing on customer differences, they need to build on powerful commonalities in what buyers value... To reach beyond existing demand, think noncustomers before customes; commonalities before differences; and desegmentation before pursuing finer segmentation.

Stakeholder(s):

  • Noncustomers, First TierBuyers who minimally purchase an industry's offerings out of necessity but are mentally noncustomers ... waiting to jump ship and leave the industry as soon as the opportunity presents itself... However, if offered a leap in value, not only would they stay, but also their frequency of purchases would multiply, unlocking enormous latent demand.
    • Buying (Performer, Beneficiary)

  • Noncustomers, Tier Two... people who refuse to use [the] industry's offerings... buyers who have seen [the] offerings as an option to fill their needs but have voted against them.
    • Buying (Performer, Beneficiary)

  • Noncustomers, Tier 3... noncustomers who have never thought of [the] market's offerings as an option.
    • Buying (Performer, Beneficiary)

Objective(s):