Blue Ocean and Lean Startup pricing

The Lean Startup approach popularized by Eric Ries (Ries, 2017) recommends getting a minimal viable product (MVP) on the market as fast as possible.  A small market of tech-savvy customers will use the product and provide feedback to improve the product in the direction the market wants. This is called customer development by Steve Blank (Blank, 2020).

Kim & Mauborgne warn against this strategy when the value proposition can be copied easily and there are strong positive network externalities. If the value proposition can be copied easily, competitors will turn up quickly. If there are strong network externalities, then any competitor that reaches the tipping point first, will obliterate all competition, including you. They recommend having a strong brand and attractive price from day one to get a mass following quickly. This makes it hard for potential competitors to enter the market.

Blue Ocean and Learn Startup are different ways to manage the risk of developing a product for which there is no market. <em>E<sup>3</sup>value</em> is compatible with both of them. You may sketch a first version of your business model and improve it while you are putting MVPs on the market, as in Lean Startup. Or you may design a radically new value proposition, design your value network, revenue model and delivery technology, and do a thorough analysis of financial feasibility before you go to market, as Blue Ocean recommends.