Title: Workshop on Blue Ocean Strategy
1Workshop on Blue Ocean Strategy
- Creating New Market Spaces
2- Competing in overcrowded industries is no way to
sustain high performance. - The real opportunity is to create blue oceans of
uncontested market space.
3Cirque du Soleil
- Challenges
- Decreasing
- Audiences
- Increasing
- Costs
- Alternatives
- Sporting events
- TV
- Video Games
Cirque
- PESTE
- Animal rights groups
- Star performers demand
- high salaries
- Rivals
- Ringling Bros
- Barnum Bailey
4Cirque Revenues up 22 times in 10 years-how?
- Cirque created uncontested market space that made
competition irrelevant - New customer focus adults corporate clients-
pull them from theatre, opera , ballet
5(Blue)
(Red)
(Red)
6Raise
Create
Eliminate
Reduce
7Four Action Framework The Case of Cirque du
Soleil (A Circus Company)
Reduce
Eliminate
- Star performers
- Animal shows
- Aisle concession sales
- Multiple show arenas
Raise
Create
- Theme
- Refined environment
- Multiple productions
- Artistic music and dance
8Business Universe
Red Ocean
Blue Ocean
New Industry Ex eBay On line auction
From red ocean By altering boundaries
9- Look back 100 years
- These were not there
- Automobiles
- Music recording
- Aviation
- Petrochemicals
- Pharmaceuticals
- Look back 30 years..
- These did not exist
- Mutual funds
- Cell phones
- Home videos
- Bio technology
10People assume that everything that is going to be
invented must have been invented already. But it
hasnt.
- If you believe human wants and needs are
infinite, then there are infinite industries to
be created, infinite businesses to be started,
and the only limiting factor is human imagination.
11Research Findings
- Blue oceans are not about technology innovation
- Incumbents often create blue oceans and usually
within their core businesses. - Company and industry are wrong units of analysis
- Creating blue oceans builds brands
12Red vs Blue Ocean The Imperatives/ Defining
Characteristics
13Red vs Blue Ocean The Imperatives/ contd
14Barriers to Imitation
- Creators of Blue Ocean enjoy benefits without
challenges for 10-15 years
- Examples
- Cirque du Soleil
- Home Depot
- Federal Express
- Southwest Airlines
- CNN
15Blue and Red Oceans co-exist. Companies must
understand the strategic logic of both types
of Oceans.