My startup is entering the project management software space, which is incredibly crowded. We want to apply Blue Ocean Strategy to find "uncontested market space." Is it better to focus on a niche industry, or should we look at creating entirely new features that traditional competitors have ignored?
3 answers
Blue Ocean Strategy isn't just about finding a niche; it’s about "Value Innovation." You need to look at the Strategy Canvas of your competitors—companies like Asana or Jira—and identify what you can Eliminate, Reduce, Raise, and Create (the ERRc Grid). For example, could you eliminate complex pricing tiers and create a community-driven automation library? Instead of competing on the same features, you change the boundaries of the industry. If every competitor is focusing on "Enterprise features," perhaps your Blue Ocean is "Extreme Simplicity for Solopreneurs" where you offer zero-setup workflows.
Using the ERRC grid is smart, but how do you prevent the "Red Ocean" giants from simply copying your "Create" features once they see you gaining traction in that uncontested space?
Focus on the non-customers. Find the people who currently refuse to use PM software because it's too hard, and build exactly what makes them feel comfortable.
Jennifer is right. The biggest market is often the people who aren't even in the market yet. Solving their specific pain points is the essence of a true Blue Ocean.
That’s where the "Barriers to Imitation" come in, Steven. Your advantage shouldn't just be a feature; it should be an entire ecosystem or a brand identity that is hard for a giant to pivot toward without alienating their existing user base. If Jira tries to be "extremely simple," they risk losing their core enterprise power users.