Ajay: Hey! How’s life after resigning from your job?
Friend: I didn’t resign.
Ajay: But last time we spoke you mentioned you were planning to quit and be an entrepreneur.
Friend: Yeah, I had an idea in my mind then. But later I found out that there were more than enough companies in that space already. Quitting my job to be an entrepreneur in an overcrowded space would be suicidal.
Ajay: Maybe you should take a dip in the blue ocean.
Friend: Im sorry, what? Im not a swimmer
Ajay: Blue Ocean Strategy is the name of an interesting book by Chan Kim & Renee Mauborgne which details a marketing strategy that you could put to use.
Friend: Is it?
Ajay: Yes. Red Ocean represents industries that exist today and Blue Ocean is the space where industries dont exist yet. The strategy essentially talks about opening new market spaces and creating new demand.
Friend: Is it possible to open a new market in a space where the competition is already tough?
Ajay: If you make the right moves, absolutely. There have been several instances of Blue Oceans evolving from Red Oceans. Have you heard of the story of Cirque du Soleil, the largest contemporary circus producer in the world?
Friend: Circus company? I thought they were dying.
Ajay: Exactly. Everybody thought so. Yet, Cirque managed to succeed by offering a unique experience to the audience combining the best of both circus and theatre. They reduced costs and tapped into a new audience – adults and corporate clients – who were willing to pay much more than the traditional circus audience. In the founders own words, they didnt just reinvent the circus, they repackaged it.
Friend: I think Im getting a hang of it.
Ajay: Great! So think about your entrepreneurial idea once again. And remember the words of Chan Kim, co author of the book – The only way to beat the competition is to stop trying to beat the competition.