As the generation changes, new kinds of field of job such as IT, diverse services, recreation, and beauty industry have emerged. Occupations with dim future have become obsolete, and people are searching for new fields with frontier mind. Competition is probably the key word for capitalistic free market system. Despite the obvious merit of capitalism, surviving in this unending competition is very burdensome. The reason that the kinds of jobs are keep changing and the only way to exit from this unending competition is Blue Ocean. Let’s learn about the characteristics of it and take a deeper look how to apply this concept to a company and individual.
What is Blue Ocean?
The marketing strategy of creating new values is called Blue Ocean strategy, and it is used to avoid the fierce competition. Blue Ocean is the market that does not yet exist or is unknown to most people so that is has bright future with few competitors. Since this market is driven by creation instead of competition, it insures very high income and various opportunities to promote rapid growth. In other words, Blue Ocean refers to a comprehensive market that has not been tried but possesses unlimited potential. The crucial factor in Blue Ocean is value innovation. Values without any innovation cannot play an unparalleled and active role in the market. The word ‘Blue Ocean’ was originated from business marketing essay “Blue Ocean Strategy” written by France Business graduate school Kim Wie-chan professor who teaches international business and EU consultant at the same time with his coworker Professor Renee Mauborgne.
What Other Oceans Are There?
Red Ocean: A field that is already well known and has no more rooms for others, or else goes through fierce and bloody competition, is referred to Red Ocean. Since the limitation of the industry is already defined and there are overflowing competitors so that they fiercely compete one another with the same goal. Terminal equipment and mobile phone company would be the examples. In terminal equipment market, Samsung, Pantech, and LG compete each another. For cell phones are already widely used throughout the world, there seems to be no more potential for growth.
Purple Ocean: If one knows that purple is the mixture color of red and blue, he can make an educated guess on what Purple Ocean is. In the market saturated with over competition, the Red Ocean, coming up with a totally new market, Blue Ocean, by adding new business ideas or technologies is called Purple Ocean. This is making new values through turnover of a way of thinking from the already existing frame. Choosing Blue Ocean strategy with new demands and high margin is the most ideal, but pioneering a new field is a quite difficult thing to do. Thus, Purple Ocean is the alternative option. Minimizing the danger and cost coming from searching for Blue Ocean, but still evading Red Ocean by change and differentiation is the greatest advantage of Purple Ocean. Purple Ocean develops derivative products, applies new services or selling strategies, or changes the culture of a company.
Xylitol Company in food industry is an example. People used to believe that chewing gums before going to the bed is wrong and considered it an act of out of sense. However, the company could successfully persuade the public by making people trust them through the words that the gum can prevent concavity because it is chosen by experts. By adding ingredient that can help prevent concavity in gums, the company could create Xylitol syndrome. Subsequently, other derivative products such as gums with additive of mint in order to prevent dozing during driving, Xylitol kids mint, snacks, drinks, and fermented milk could become hit products.
Finding the Key Factors of Creating Blue Ocean in Canada Cirque Du Soleil’s
In order to create Blue Ocean, four factors called ERRC is needed; they are eliminate, raise, reduce, and create. Let’s apply these four key factors into a real life situation.
Due to the appearance of sports broadcast, video games, and other various home entertainments, the circus industry worldwide face hardship in 1980s. Circus companies had to go through even fiercer competition in order to survive in the shrinking market. By then, circus industry has been downgraded to Red Ocean. In this situation, Cirque Du Soleil pioneered Blue Ocean. By breaking the already existing thinking frame of how a circus should be like, he realized he needed something new in order to draw more customers. For the rebirth of circus and to maintain broader range of customers, he leaped toward Blue Ocean with value innovation and differentiation. At first, he observes that people who do not watch circus choose to watch plays and musicals as alternatives, and he concluded that the audiences for the alternatives are much greater in number and mostly consisted of adults who can spend more money. Thus, targeting this group of audiences, he broke the boundary for circus, play, and musical, and created something new for Blue Ocean. He keeps the factors of fun, thrill and wonder of circus and creates a stage with intellectual refinement and rich sense of art of theater. By combining existing art performances such as classic concert, musical, play, gymnastics competition, ballet, and fashion show he could successfully draw not only original audience for circus but also adult audience for play who were not used to watch circus.
Looking at the value curve of original circus, the relative importance of star clown and animal performance is very high. Thus, circus companies competed one another for more famous star clowns and more eyes catching animal shows than others. However, Cirque Du Soleil’s value innovation was differentiated from this value curve. He eliminated star clowns or animal shows that cost too much and valued not enough and reduced the original factors of circus such as thrill, adventure, fun and humor. He then raised the feature of theater by adopting unique appearance and refined sets and created the performance with theme, story, music, and dance. In this way, he successfully employed the pivotal factors: eliminate, reduce, raise, and create (ERRC) in order to create Blue Ocean. Cirque Du Soleil’s circus is planning to extend to Korea in 3~4 years as well.
Pioneering Blue Ocean of Life through Value Innovation for Individuals
The use of Blue Ocean is not limited to economic market, companies, or future vision. It can also be applied to create brands for individuals. In these days, young people compete each other with their specifications for the limited jobs. They pour down their effort and time for higher GPA, higher TOEIC score, more certifications and internships. However, in the viewpoint of companies, the standardized and similar applicants do not seem attractive. In order to become attractive and competent applicants, they need to use Blue Ocean strategy as well.
Instead of everyone focusing on the same specification, one should find his own and unique strong point, compared to that of other competitors or already employed people, and enhances it even further. People also need to consider what characteristics they do have which go well with the companies, and emphasize their own charms and color. In order to do self-marketing, they would also need an attractive slogan. Like this, you can become more competitive and attractive applicants and individuals by practicing value innovation and creating unique and special value only for yourself. In the future, actively engage in this strategy and explore new fields and jobs in Blue Ocean.< 저작권자 © 중앙헤럴드 무단전재 및 재배포금지 >