Red Ocean Traps - KeynesYouDigIt/Knowledge GitHub Wiki

As opposed to the "Blue Ocean"

Blue Oceans can be thought of as markets that do not exist yet. The microwave oven would have been a blue ocean in the 1970s. Conversely, Red Oceans can be thought of as all the marketplaces which currently exist. So, whilst microwave ovens were definitely blue ocean in the 1970’s, today they are definitely a red ocean space. source

Seeing Market-Creating Strategies as Customer-Oriented Approaches

A strategy that involves turning an industry's non-consumers into consumers means saying no to incumbent customers. Focusing on served customers usually means competing directly with existing providers.

Treating Market-Creating Strategies as Niche Strategies

Uncovering a niche in an existing space is not the same as creating new markets. They sometimes "desegment" existing markets by finding key commonalities among buyer groups.

Confusing Technology Innovations with Market Creation Strategies

Innovating value, not technology, is what creates new markets. You create new markets with increased productivity, simplicity, ease of use, fun, or environmental friendliness. Tech pushes can lead organizations to decrease those.

Equating Creative Destruction with Market Creation

Some market creating strategies solve problems that didn't have market solutions before (eg. Viagra and microfinancing). Worse, fear of creative destruction this can make people in an organization defensive or overburden development teams.

Equating Differentiation Strategies with Market Creation

Differentiation is choosing a space on the cost/value scale; market creation is about breaking the scale entirely. People often end up trying to become premium players in an existing space.

Equating Low-Cost Strategies with Market Creation

You can't create a new market just by driving down cost. You aren't competiting with existing players, but against substitutes and alternatives that non-consumers use.