Blue Ocean Strategy
for Printing (ISIC 1811)
The printing industry is a quintessential 'red ocean' market, marked by severe 'Intensified Price Competition' (MD01), 'Margin Compression' (MD03), and 'Structural Market Saturation' (MD08). This makes Blue Ocean Strategy highly pertinent as it provides a structured framework to escape this...
Strategic Overview
The printing industry is largely characterized by a 'red ocean' environment—a hyper-competitive space where companies fight fiercely for market share in a "Shrinking Core Market & Revenue Decline" (MD01). This leads to "Intensified Price Competition" (MD01), "Margin Compression" (MD03), and a landscape filled with "Undifferentiated Offerings" (MD07). Such conditions make sustained profitability challenging, necessitating a radical shift in strategic thinking.
Blue Ocean Strategy offers a compelling alternative by advocating for the creation of new, uncontested market spaces, rendering competition irrelevant. This involves simultaneously pursuing differentiation and low cost, focusing on 'value innovation' to open up new demand. For the printing industry, this means moving beyond incremental improvements in traditional printing services and instead identifying entirely new ways to create value for customers, including non-customers or those in adjacent industries.
Given the industry's 'Technology Adoption & Legacy Drag' (IN02) and 'High R&D Investment & Risk' (IN03) for innovation, a Blue Ocean approach provides a structured methodology to navigate these challenges. By systematically exploring new value curves (e.g., 'smart' integrated print solutions, sustainable circular print models, or 3D printing for specialized applications), printers can escape the 'red ocean' and secure new growth avenues, directly addressing the critical 'Need for Diversification & Reinvention' (MD01).
4 strategic insights for this industry
Reconceptualizing 'Print' into Value-Added Information or Material Services
Instead of focusing on traditional 'ink on paper,' printers can redefine their core offering. For example, shifting from printing business documents to offering managed document services that optimize workflows and information access, or evolving from printing labels to providing product authentication and supply chain traceability solutions via smart, embedded print technologies. This creates new utility and value that traditional competitors cannot match.
Unlocking Non-Customers and Adjacent Markets with 'Hybrid' Solutions
Significant blue ocean opportunities lie in identifying and addressing the needs of non-customers (e.g., small businesses finding print too complex/costly) or extending print capabilities into adjacent sectors not traditionally served by print (e.g., medical device prototyping with 3D printing, smart textiles, printed electronics). This requires understanding the unmet 'jobs' of these segments and offering hybrid digital-physical solutions.
Applying the ERRC Framework for Value Innovation in Print
The Eliminate-Reduce-Raise-Create (ERRC) grid is critical. Printers can Eliminate unnecessary costly processes (e.g., large inventory, setup times), Reduce over-engineering or features customers don't value, Raise critical value factors (e.g., personalization, speed-to-market, data integration), and Create entirely new services (e.g., Augmented Reality print experiences, subscription-based print services, circular economy print models). This systematic approach yields simultaneous differentiation and cost reduction.
Materials and Process Innovation Beyond Paper Substrates
The 'blue ocean' for printing may involve moving beyond paper. Investing in research and development for printing on diverse substrates (e.g., textiles, ceramics, plastics, conductive materials) or adopting additive manufacturing (3D printing) opens up entirely new applications and industries, such as industrial component manufacturing, customized consumer goods, or specialized medical solutions, effectively redefining the industry's boundaries.
Prioritized actions for this industry
Conduct a comprehensive Value Curve analysis using the ERRC grid for existing offerings and competitive landscapes.
Systematically analyze what to Eliminate, Reduce, Raise, and Create in current print services to develop a uniquely differentiated value proposition at a lower cost, thereby escaping direct competition ('Intensified Price Competition' MD01, 'Undifferentiated Offerings' MD07) and creating new market space.
Invest in disruptive technologies and hybrid print-digital solutions that create new utility.
Focus R&D on emerging areas like smart inks, conductive printing, Augmented Reality integration with physical print, or exploring additive manufacturing (3D printing). This allows for the creation of truly novel product-service systems that address new customer 'jobs' and overcome 'Technology Adoption & Legacy Drag' (IN02) while offering differentiation.
Identify and target non-customers and underserved segments in adjacent industries.
Research why certain customer segments or entire industries (e.g., niche manufacturing, highly personalized healthcare) are not currently using print, or how their problems could be solved by new forms of 'print'. This strategy focuses on generating new demand rather than competing for existing, diminishing demand ('Shrinking Core Market' MD01, 'Structural Market Saturation' MD08).
Form strategic alliances with technology providers, logistics firms, or data analytics companies.
Leverage external expertise to quickly build comprehensive 'blue ocean' offerings that integrate print with advanced digital or logistical capabilities. This mitigates the 'High Capital Investment and Fixed Costs' (PM03) and 'Skills Gap & Workforce Retraining' (IN02) associated with developing all capabilities in-house.
From quick wins to long-term transformation
- Conduct internal workshops to educate leadership and key teams on Blue Ocean principles and the ERRC framework.
- Facilitate brainstorming sessions focused on identifying 'non-customers' for existing print services and potential pain points.
- Pilot an ERRC analysis on one specific product line to identify quick 'eliminate' or 'reduce' opportunities.
- Establish a cross-functional 'Blue Ocean' innovation team with dedicated resources, separated from core operations.
- Conduct market research to validate potential 'blue ocean' concepts with non-customers and adjacent markets.
- Develop prototypes or proof-of-concept for new hybrid print-digital offerings identified through ERRC and non-customer analysis.
- Realign organizational structure and culture to support continuous value innovation and market creation.
- Make significant strategic investments in new infrastructure, R&D, and skill development for future 'blue ocean' ventures (e.g., 3D printing facilities, IoT integration labs).
- Potentially create new business units or spin-offs focused entirely on these new market spaces to avoid internal 'red ocean' inertia.
- Lack of strong executive sponsorship and clear communication, leading to resistance from existing business units.
- Innovation efforts becoming incremental ('red ocean' improvements) rather than truly transformative ('blue ocean').
- Underestimating the capital investment and long development cycles required for truly novel solutions.
- Failing to effectively communicate the new value proposition to potential non-customers, hindering adoption.
Measuring strategic progress
| Metric | Description | Target Benchmark |
|---|---|---|
| Revenue from New Market Offerings | Percentage of total revenue generated from products/services specifically designed for 'blue ocean' spaces. | Achieve 15-20% of total revenue from new offerings within 5 years |
| Gross Margin of New Offerings | Profit margins from 'blue ocean' products/services, typically higher due to reduced competition. | Maintain gross margins 10-15% higher than traditional print services |
| Non-Customer Conversion Rate | Rate at which previously unserved or 'non-customers' are acquired for new offerings. | 5-10% annual increase in new customer acquisition from target non-segments |
| Innovation Pipeline Value | The estimated future revenue potential of 'blue ocean' ideas currently in development. | Minimum $X million in projected revenue from pipeline innovations |
Other strategy analyses for Printing
Also see: Blue Ocean Strategy Framework