Red ocean traps PDF

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Practicum case on Red Ocean Traps...

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Aleks Golemanov Professor Gainor IB490 03/22/20 “Red Ocean Traps” One of the biggest roadblocks for companies to enter new markets and open themselves to new customers, is being stuck on current costumers. Companies believe that their products and business is run around the needs of the existing customers and tend to stick to such tactics and methods, whilst disregarding the option of converting non-users. This can limit a company and prevent it from entering new markets. The next roadblock is the difference between niche markets and market-creation. Some companies make the mistake of finding a niche market in an already entered market, thinking they are entering a new one, when in fact they are just digging deeper into the current market. Entering a whole new market does not always mean differentiation, but rather a completely new way of doing business or creating a product. Third roadblock is confusing technology innovation and new-market creation. Often it is mistaken that with cutting edge technology, companies will enter new markets. That is not always the case. Cutting edge technology is not needed, for example with Starbuck, or the Yellow Tail wine, which just made the wine drinking fun and simple. While some companies rely heavily on cutting edge technology to produce results that will open new markets, that is not always the case. Escaping the red ocean traps requires proper training of the managers and well-defined path for defining and approaching a new market. The market needs to be well researched in order to be defined as a niche or in fact, a brand-new market....