Geographical Expansion

You must decide the portion of the total geographic market territory (Roundland and Starland) that you want to reach with your Blue Ocean offering. 

As explained in the manual, there are two broad geographic markets – like two continents: Roundland and Starland. The two markets are about the same size.  Roundland in some way resembles North America.  Starland is in some way like Europe with multiple languages and countries. Values input in Geographical expansion are in the form “R%/S%” where R% is the expansion in Roundland and S% the expansion in Starland.   If you enter a value lower than or equal to “100%/0%”, your product will only be distributed in Roundland.  Geographic expansion into Starland starts when you enter a value of “100%/10% or more.

Distribution automatically calculates the cost of your sales force from the degree of geographic expansion you choose.  This cost includes the salaries and benefits of sales people, the point-of-sales materials, promotional items, participation at trade-shows, etc.  As you already know from your Red Ocean experience, sales people are costly.  You may have to limit your geographical expansion in order to remain within your allocated budget.