1. Reach Beyond Existing Customers
By: Andy Rogers Bowie Wynne Miller Peaden Richard Kelly

2. Formulating a Blue Ocean Strategy
How do you maximize the size of the blue ocean you are creating?
Companies must challenge two strategy practices
Focusing on existing customers
Drive for finer segmentation
Greater the competition = Greater customization
How to maximize your blue ocean
Look into your noncustomers

3. Three Tiers of Noncustomers
First Tier: closest to your market (want an electric vehicle)
Second Tier: refuse to use your industry’s offerings (gas only vehicles)
Third Tier: In markets distant from ours (never heard of tesla or don’t drive)

4. First Tier Noncustomers
“Soon to be”
These noncustomers are on the edge of our market
They are ready to jump ship
They minimally use the current market, but search for options
The first tier is an ocean of untapped demand waiting to be released
Customers who want an electric vehicle, but are waiting for Tesla to create a vehicle that better fits their needs.
Ex:Cheaper, longer distances, faster charging
If Tesla can create something to accommodate their needs they will become customers.

5. Second Tier Noncustomers
“Refusing” noncustomers who consciously choose against your market
Either do not use or cannot afford to use the current market offerings
People refusing the change in technology.
Older people who are basically denying the change of the world.
Possible customers that can’t afford the high end models
Model 3 starting at $30,000
Newly released Model Y starting at $47,000 but will have a cheaper standard model in a few years listed at $39,000.
Customers seeking further range capability
Tesla Model S 100D has a 335 mile range which is the highest of any electric vehicle. This also had a price tag starting at $133,000. ($94,000)
A lower price high range model

6. Third Tier Noncustomers
“Unexplored” noncustomers who are in markets distant from yours
They are the furthest from your market and have never even thought of your markets products as an option. This is because their needs and the business operations associated with them have, in some way, assumed to belong to other markets.
These are people who may not own a car or ever plan on buying one.
Though they might not be in the car industry, Tesla has a few subsidiaries that they might be interested in, such as SolarCity or Maxwell Technologies.
(Motorcycle owners, pedestrians, public transportation users)

7. Go for the biggest Catchment
There is no rule to suggest which tier of noncustomers to target, or when to do it
By figuring out and comparing the needs of potential customers, you want to incorporate the biggest common traits in order to reach 3rd tier
Focus on the needs of the consumer
Determine the commonalities of the consumer
In order to reach beyond existing demand you have to think about Non-customers over the existing customers
“You should focus on the tier that represents the biggest catchment that your organization has the capability to act on”

8. Questions?