How MSP’s Can Escape Bloody “Red Ocean” Markets

The managed services industry has become increasingly saturated, with many of us competing for the same old clients in the same old industries.
However, there may be some untapped opportunities by exploring new “blue oceans” in your area.

Most MSPs focus on manufacturing, healthcare, and professional firms. These are now filled with competitors who also claim faster response times and friendlier service. So, it is no longer much of a differentiator.

It can become a race to the bottom, so you must look beyond these crowded waters as the “red ocean” becomes bloodied.

Following the Blue Ocean Strategy

There is a book called the “Blue Ocean Strategy,” by Renée Mauborgne and W. Chan Kim. Its central idea is to encourage businesses to avoid competing in crowded, fiercely competitive “red ocean” markets and instead create new, uncontested market spaces known as “blue oceans.”

So, What are the “Blue Oceans”?

The “Blue Oceans” are the easy-to-overlook industries that may not seem heavily reliant on technology at first glance. However, some of these “offline” sectors can present significant opportunities for MSPs.

To name a few: commercial laundries, janitorial services, and entertainment venues are prime examples.

In the entertainment industry, uptime is very important, as businesses make their money during limited weekly operating hours. While headcounts may be low, many of these types of businesses are multi-location, which amplifies our revenue potential.

Expanding into related healthcare industries like veterinary practices and aged care may also be a smart strategy for MSPs already serving doctors and dentists. The operational similarities allow you to leverage your existing infrastructure and expertise.

Breaking into New Verticals

It takes work to break into entirely new verticals, so consider leveraging your personal network. Who do you know who works in these industries?
What technical problems do they face at work?

Approaching these industries through personal connections will result in more promising leads than cold calling, and already understanding their technical problems will make your marketing message far more effective, especially if you have access to issue-specific marketing materials.

You can also look at non-traditional partnerships, such as who else services these people.

What industries does your accountant service? Could you offer a free cybersecurity training session for your accountant’s clients? It makes your accountant look good and potentially gains you clients; it’s a win-win.

The open waters beyond our usual routes just might be teeming with opportunity. If you find your oceans increasingly bloodied, it might be time for a blue ocean expedition.