In a Sentence, What is a Blue Ocean?

August 18, 2009 | Sarah Chong

If you have read W. Chan Kim and Renée Mauborgne’s book, “Blue Ocean Strategy“, you would have a very good idea of what it is about. However, for those who prefer articles to books, here is an article that summarizes the essential characteristics of a blue ocean.

I can’t teach you how to create one but I am going to use my own understanding from the book and also other resources to save you from drowning in the red ocean competition.

Hopefully after reading this article, you would start setting your eyes on blue ocean opportunities.

What is a Blue Ocean?

A blue ocean is a new way to meet the same old need, which your competitors are also trying to satisfy (while cutting each other’s throats). A new way could mean a different focus when promoting your product or a new product to satisfy the same need.

What if you could escape from head-on competition?

Think about it, most companies are dying while competing with each other because they are essentially promoting the same product attributes, the same experience and most importantly, the same way to meet consumer needs. This is called the red ocean, where everyone is using the same way to satisfy needs. Just because someone came up with a great idea on how to go about meeting a certain need does not mean that there are no better ways.

The problem is, most marketers like to harp on the old ideas, and they’d fight it out to prove that their version of the idea is better. Take Gillette as an example, it used to compete based on the number of blades its shaver had. With every new shaver, there would be an additional blade. But with every extra blade, competitors added on yet another to show that their shavers were better.

As a result, from one blade they ended up with 5. How long could they have lasted in this competition? Or rather how many blades could they place in a shaver? Gillette was focusing on a red ocean.

Example of a Blue Ocean

Taking from the first chapter of the book, Cirque du Soleil managed to find a blue ocean. A new way to meet the same need.

What’s the need here? Circus Entertainment.

Circuses used to be all about animals, hoopers, clowns and tightrope walkers. How did they compete? They tried to recruit famous clowns, get bigger and more exotic animals and engage in increasingly dangerous acts. They desperately promoted their skilled performers and spectacular animals. Still, the industry was dying and it wasn’t because there was no more need for circus entertainment.

As the other circuses fought it out, Cirque du Soleil created a blue ocean. It reinvented a circus that is without animal acts, but a mixture of traditional circus arts with poetic spectacle, music, and dance. There were no animals and no ring, only a seamless storyline.

Unlike others, Cirque du Soleil focused on marketing its shows rather than its performers. It also taught circus arts to the public because they realized that some people always dreamed of taking part in a circus performance. A new market was created.

Is your business competing in the red ocean? Are you trying to advertise on the same product attribute that your competitors are also promoting massively on? If the answers are yes, look for new ways to satisfy the need of your consumers. Most of the time, there’s no need for a completely new product, just a completely new way to promote it.