Ryanair's Strategy

Founded in 1985, Ryanair, a budget airline from Ireland, did not aim to join the ranks of existing airlines. If they had pursued a traditional model, they would have struggled in a saturated market. Instead, they targeted individuals who typically opted for trains or cars instead of flying, offering a faster travel option at similar costs.

Airbnb and Uber's Market Creation

Airbnb and Uber also chose not to compete head-on with established giants. Rather than building a hotel empire, Airbnb linked property owners with renters. Meanwhile, Uber connected drivers with passengers.

It's debatable whether these companies truly created new consumer markets, as people were already using hotels and taxis before their emergence. However, they undeniably established new opportunities for gig workers and property owners. For instance, a friend of mine invested in two apartments in Ljubljana, Slovenia, and now prefers this over a traditional job.

Meal Kit Delivery Services

Have you ever wanted to enjoy Indian masoor dal soup or Serbian 'chorba'? If you don't live in those regions, cooking them can be challenging, as sourcing the right ingredients is often a hassle. Meal kit delivery services step in to simplify this, allowing you to prepare complex dishes at home and feel like a culinary expert.

Companies like Netflix and Dropbox have revolutionized how we consume media and store files, respectively. Notably, Amazon didn't invent a new consumer market either; it simply provided a platform for small independent sellers, initially offering books to the same customers as traditional bookstores.

The Quest for Innovative Ideas

Peter Drucker famously stated, "The purpose of business is to create and keep a customer." Discovering new markets can be daunting, yet the rewards can be significant. Various theorists have endeavored to uncover the secret to disruptive innovation.

While I don't have a one-size-fits-all solution, I can share some strategies that have proven effective for startups and established businesses alike.

1. Addressing Inconveniences

Steve Jobs recognized the unappealing design and functionality of mp3 players in the late 90s, leading to the creation of the iPod. Similarly, Drew Houston conceived the idea for Dropbox when he forgot his flash drive. Likewise, Travis Kalanik founded Uber after struggling to hire a limo in San Francisco.

Successful entrepreneurs often identify inconveniences and seek to resolve them. Observing discomforts can spark innovative business ideas. For example, while numerous platforms aggregate flight information, none act as personal assistants. One of my clients is developing a chatbot to match customer needs with airline offerings.

Similarly, a mobile projector allows users to watch movies anywhere, turning a cumbersome experience into a convenient one.

2. Understanding Non-Customers and Anti-Customers

Every product or service has individuals who do not utilize it. Some may be anti-customers—those who don't need a solution—while others are non-customers who require the service but are deterred by various factors.

For instance, millions enjoy music through platforms like Spotify, yet many do not. Some are anti-customers who simply dislike music, while others, despite their passion, lack the necessary technology to access it.

If you can convert non-customers into customers, you open up new markets. Many aspire to own homes but face financial barriers. Finding a way to make housing more affordable could tap into this vast pool of non-customers.

Conclusion

While this approach isn't foolproof, it does offer a pathway to innovation. The more ideas you generate, the better your chances of developing a successful product.

Maintain a sense of curiosity, observe your surroundings, and engage in dialogue. One of my clients conducted over 500 customer interviews, uncovering a significant gap between customer needs and available solutions.

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