W. Chan Kim
Professor of Strategy and International Management
Affiliate Professor of Strategy
Market Entry; Markets; Technological Innovations; Yellow Tail (Company); Starbucks Corp.; Creative Destruction;
Journal Article | Harvard Business Review | 93 | March 2015
Red Ocean Traps
The article notes the importance to firms of creating new markets for their products and services, and discusses several beliefs that undermine this goal.The authors say firms err when they focus new initiatives on existing customers instead of noncustomers. They cite wine producer Yellow Tail and coffeehouse chain Starbucks as examples of companies that created new markets without relying on technological innovation.It is also argued that creating new markets does not require the creative destruction of existing ones.