Professors W. Chan Kim and Renee Mauborgne published a book in 2005 explaining the marketing theory whereby companies can achieve success by creating products and services in an uncontested market space. The researchers call these uncharted market territories “Blue Oceans”. In contrast, “Red Oceans” are marketplaces full of competitors fighting for dominance, hence turning the ocean red with blood.
Kim and Mauborgne studied thirty unique industries over more than a 100 years and focused on 150 strategic corporate moves to find their Blue Ocean. In time, of course, all truly successful Blue Oceans will soon turn Red as the laws of human nature kick in. Competitors will court the Blue Ocean customers with claims of “better”, “cheaper”, or both.
A classic example of the Blue Ocean Strategy is the internationally famous performance company Cirque du Soleil. This company masterfully blended opera, ballet, and the circus to thrill audiences throughout the world. The company intentionally crafted the feel of the circus while avoiding “star performers” and eliminating animals.
The book shares other examples of companies thriving in Blue Oceans such as NetJets (fractional jet ownership), Curves (health clubs for women), and Dyson (cyclonic vacuum cleaners).
While Wildcatters are never afraid of a little competition, the wisdom of searching for Blue Oceans is inescapable. It is far easier to win the competition if you have no competitors!