general aviation’s blue ocean strategy
One of last year’s hottest business books was Blue Ocean Strategy by W. Chan Kim and Renee Mauborgne. Leaders in the general aviation industry would be wise to order a copy. According to the authors, “red oceans” are crowded with competitors while “blue oceans” represent untapped market space with the opportunity for highly profitable growth. Among the strategies for leveraging “blue oceans” are the following:
- DO NOT compete in existing market space. INSTEAD you should create uncontested market space.
- DO NOT beat the competition. INSTEAD you should make the competition irrelevant.
- DO NOT exploit existing demand. INSTEAD you should create and capture new demand.
I’ve written about this previously but it is worthwhile enough, in my opinion, to repeat: Women represent a blue ocean for the aviation industry. Only 5.8% of today’s private pilots are female. What’s more shocking is that the percentage hasn’t changed in 15 years. What’s going on here? Does it have to be this way? Are only 5.8% of women really interested in flying? I think not.
Consider the field of medicine. in 1970 only 7.6% of physicians in the United States were female. By 2003 that had steadily climbed to 25.8%. This is still seems low but, unlike the aviation industry, there has been consistent progress. The aviation industry needs to adjust it’s methods for going to market to reach women more effectively.
If the aviation industry could achieve what the medical field has done it could result in over 100,000 new pilots. At first glance that seems to good to be true. However, I think we’ve all become too complacent with the with the glut that the industry has been in since it peaked at 827,000 pilots in 1980.
Broadening the base of female pilots could be the shot in the arm that the industry needs. There have been several instances in the history of aviation where the number of pilots has doubled or even tripled in under 10 years. We need to think big here - let’s make it happen again!
So which company will capture this blue ocean? Cirrus currently leads the industry in sales - can they capture the female demographic? The majority of today’s male pilots learned how to fly in a Cessna - are they capable of training a new segment of women pilots? The sport pilot rule lowers the price for entry - can Flight Design CT, CubCrafters, or one of the other LSA designs gain the market? It just takes a commitment from an industry leader willing to think outside the box.
Sources used for this post:
Women in Aviation, International
AOPA
American Medical Association
[tags]General Aviation, Women in Aviation, Aviation Marketing, Marketing to Women, Blue Ocean Strategy, W. Chan Kim, Renee Mauborgne, AOPA, Cirrus, Cessna, Flight Design[/tags]
Add comment January 14th, 2006