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Workshop on Blue Ocean Strategy

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Competing in overcrowded industries is no way to sustain ... The Case of Cirque du Soleil (A Circus Company) Theme. Refined environment. Multiple productions ... – PowerPoint PPT presentation

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Title: Workshop on Blue Ocean Strategy


1
Workshop 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.

3
Cirque 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

4
Cirque 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)
6
Raise
Create
Eliminate
Reduce
7
Four Action Framework The Case of Cirque du
Soleil (A Circus Company)
Reduce
Eliminate
  • Star performers
  • Animal shows
  • Aisle concession sales
  • Multiple show arenas
  • Thrill and danger

Raise
Create
  • Theme
  • Refined environment
  • Multiple productions
  • Artistic music and dance
  • Unique venue

8
Business 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

10
People 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.

11
Research 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

12
Red vs Blue Ocean The Imperatives/ Defining
Characteristics
13
Red vs Blue Ocean The Imperatives/ contd
14
Barriers 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

15
Blue and Red Oceans co-exist. Companies must
understand the strategic logic of both types
of Oceans.
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