Creating value in business with abundant competition is a difficult task. Start-ups and SME's may suffer with less budgets and human resources to allocate for innovative solutions. Clayton Christenson argues that technological value cannot be relied upon in industries, as disruptive innovators are more likely to 'blind-side' competition (Christenson, 1997). Framing a problem using design thinking and a user-centered approach however, we can benefit greatly and look at a different way to solve problems and create value for the user (Dorst, 2011). In my opinion, it is the strategy and values a company holds which determines the desired type of value to be created. Essentially, questions to ask are: which one of our target users' problems are we trying to solve? Which customers' needs are we satisfying? 

In Project Azione, I was faced with a difficult task of business expansion. To create new value to the new customer segment, I adopted a blue ocean strategy approach. By observing the 'Four Actions Framework (Kim & Mauborgne, 2005) I focused on two; 'Raise' and 'Create.'

I first established my target segment by analysing their core values. As a very niche market to begin with, I decided to expand it but retain all values held by the company. Here, I could justify placing a price premium on the product.  I then aimed to create desirable value for the new market, including self-expressive and exclusivity value. In short, to focus-differentiate from competition, I wanted the brand to speak for itself, with the emotional, desirable selling point and strong loyalty to customers at the forefront.

Differentiating a bike is difficult, but a unique service coupled with exclusivity I felt was highly sought after in my target market. I used behavioural segmentation after creating personas of commuters, and took business commuters as my target. They already show this behaviour of 'exclusivity' by purchasing high-quality products (think rolex and aston martin). This was fulfilling their emotional needs. The service included fullfilling their career goals, through emerging trends in networking via cycling. A drawback to this competitive strategy is that I would need to convince potential users that the value added is worth the increase in cost. I personally feel taking a blue ocean strategy approach during the ideation phase of the design process is invaluable to promote innovation and create new value to the consumer. Furthermore, this helped me with my method of innovation. During this semester I reverse-engineered success, therefore this technique complemented well with the blue ocean strategy. I was able to focus on a few aspects to improve the business, yet think of something completely new that the industry does not offer. Research of competition showed no UK manufacturers of high quality bikes existed, with such an innovative service attached. Brompton and Pashley (closest rivals) do not offer such. Advantages to sustain this expansion is that Azione would be first to do so and it would be very difficult to copy such a model. The company enforces and hopes to achieve organisational innovation by being disruptive within the industry.

However, it is possible to over-fulfil peoples' needs. Socio-cultural factors are crucial when launching a new product or service. An example would be organic foods. It is obvious that only in the past 10-15 years they have increased in sales. This could be due to political interventions with social issues like obesity - therefore it is imperative to keep track of those who can make or influence change. This can essentially change social attitudes and consumers would then see the value of committing to purchase. The issue here for entrepeneurs - to predict and assume correctly. Innovation diffusion should not occur here, as it is an on-going process which improves the careers of my target segment. It is also effectively 'occupational segmentation.'