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Last year I trained for my first century ride. My previous bike did not have the performance features I wanted or needed. I needed a bike that would provide more comfort on longer rides while not sacrificing speed or responsiveness.
After talking to experts and doing my research, I ended up purchasing a Trek Domane 6 Series. The word Domane is Latin for full gas. The bike has it all: blistering speed and incredible comfort and stability. Now I just need to increase my fitness level to be able to realize the full benefits my new bicycle affords.
My research revealed that all high-end bicycle manufactures compete on the same features:
Performance – The type and weight of the frame along with cable routing
Efficiency – The transfer of pedal power directly to the road with no waste
Stability – The geometry of the bike and flawless shifting
Comfort – The ability to absorb road vibration without impacting the rider (This sets the Domane apart from other bikes I researched.)
As you think about your business, what are the key features that you try to improve to stay ahead of your competition? What sets you apart? How do you innovate?
If you continue to compete on the same features as your competition, you will constantly be in a head-to-head battle to beat them and to exploit existing market demand. Why not try to make your competition irrelevant?
One of the key concepts around Blue Ocean Strategy is to create uncontested market space. One of the ways to do that is to look at the features and benefits that you offer through a four-action framework for innovation.
Eliminate – Which of the factors that your industry takes for granted should be eliminated? When Southwest Airlines decided to launch, they eliminated meals on flights to make their ticket prices more economical. I know that doesn’t seem like a big issue today, but it was back then.
Reduce – Which of the factors of your industry should be reduced below the industry standard? When Cirque du Soleil was envisioning a new type of circus experience, they decided to reduce fun and humor and thrills and danger. They still wanted it as part of the experience, but not to the same level as the traditional circus experience.
Raise – Which factors should be raised well above the industry standard? In the case of Southwest Airlines, they decide to raise hub connectivity, friendly service and speed. These then become strategic filters through which decisions were made. In order to have speed as a priority, they decided to only purchase one size jet – the 737.
Create – Which factors should be created that the industry has never offered? Cirque du Soleil created four factors that the traditional circus business never offered: themes, refined watching environment, multiple productions and artistic music and dance.
Now let’s go back to the high-end cycling industry. Comfort is not a very high factor in the industry. What if one of the manufacturers decided to raise the comfort factor well above the industry standard? They could do this with a loop wheel rather than the traditional hub-and-spoke wheel that’s been around for centuries. Check it out in this video. It remains to be seen whether this can work in the high-end cycling industry, but it is an interesting concept and worthy of experimentation.
Share Your Thoughts: As you think about this framework, what changes can you make in your business to create a new value curve and enter uncontested market space?