uncontested market space - why high tech vendors must find it

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Where big players devour

small ones.

The red is blood

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In high tech markets you must find it –

or you’ll be someone’s breakfast

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• It doesn’t matter how small you are who your

competitors are

• What matters is that your technology is

demonstrably superior

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‘ … a closer look reveals that most

[companies’] plans don’t contain a

strategy at all but rather a smorgasbord

of tactics that individually make sense

but collectively don’t add up to a unified,

clear direction that sets a company

apart—let alone makes the competition

irrelevant.’

W. Chan Kim

Co-author of

Blue Ocean Strategy:

How To Create

Uncontested Market

Space And Make The

Competition Irrelevant

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In the 1990s Apple lost the PC market

to Microsoft

By 1996 Apple was praying for a saviour

to rescue it

By then, Microsoft had a virtual

monopoly of the PC market

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Defined a new market for cool, small devices – iPod

Created a new revenue stream with iTunes

Expanded the new market with iPhone & iPad

Created a second revenue stream with App Store

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Apple Microsoft

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20 years ago IVR (Interactive Voice Response) was:

New, custom-built & expensive

By contrast, RapidCall* was:

Off-the-shelf but easily customised

Feature-rich but easy to deploy

Advanced but affordable

*We’ve changed the name at the request of the client

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• Highly profitable

• Huge customer base

• Well-established need

• Clear business benefits

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• Targeted by every global IVR vendor

• Risk Averse: won’t buy from small/local

• Easy to deploy: not necessary

• Price not an obstacle*

* To them cost effective = too cheap

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Not targeted by global vendors

>200 credit unions in Australia and NZ (then)

Value for money very important

Easy deployment, low maintenance = highly

attractive

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• National association

• Close-knit community

• CEOs know each other

• Selling by word-of-mouth

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RapidCall ended up with:

90% of the credit union market

A satisfied, loyal, unshakable

customer base

A market impervious to

competitors for 10 years

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Once you own it, selling new products to it is easier &

cheaper

Acquisition and maintenance costs are lower = more profitable

Competitors can’t get in

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Blue Ocean Strategy: How To

Create Uncontested Market Space

And Make The Competition

Irrelevant by W. Chan

Kim and Renee Mauborgne

Uncontested Market Space – full

post on Technoledge blog

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