Three avenues of innovation for new market creation and growth

Abstract

Purpose The process of redefining an existing industry problem, and then solving the redefined problem is the essence of the “blue ocean strategy” approach, which generates a more balanced blend of disruptive and nondisruptive growth. Design/methodology/approach The authors’ “A Growth Model of Market-Creating Innovation Strategy” presents a framework that shows three paths and how each triggers a different balance between disruptive and nondisruptive growth. Findings Between solving an existing industry problem and identifying and solving a brand-new problem or creating a brand new opportunity outside industry boundaries lies the path to ‘blue ocean strategy.’ Practical implications Leaders ideally choose a path to market creation where their current business is not disrupted by the initiative and where economic growth and social good are not trade-offs. Originality/value The article offers a unique review of the less disruptive path—blue ocean strategy—between solving an existing industry problem and identifying and solving a brand-new problem or creating a brand new opportunity outside industry boundaries