In 1984, one of Canada’s largest cultural exports was spawned by a group of street performers and in no more than 20 years, this company has achieved unbelievable revenues.
But, in according to:
* Cirque’s rapid growth is unlikely to set * The circus business is in long-term decline * The industry was hit decreasing audience and increasing cost * Nowadays, children are more interested in playing games than circus
How did Cirque increase their revenues?
Well, instead competing in existing industries, they reinvent the circus. Then, they developed a new strategic thinking, they equips companies with frameworks and analytic tools creating an uncontested market space. They broke through their boundaries, separating circus and theatre and they pulled in new customers of the industry. So it is, how they introduced these new concepts such as, Red Oceans and Blue Oceans.
All the industries in existence today the known market space
Industry boundaries defined and accepted
Competitive rules are known
Companies try to outperform their competitors
the market space gets crowded, prospects for profits and growth are reduced
Products become commodities
Increase of competitors
All the industries NOT in existence today the UNknown market space
a market creating strategy untainted by competition (irrelevant)
Demand is created
Profitable growth and rapid
A blue ocean can be created from within a red ocean, when companies alter the boundaries of an existing industry.
Blue Ocean Strategy is of the world’s most powerful tools for finding out whether your business has or can create a competitive advantage for customer and to survive into a competitive world. Thus, it provides a systematic approach to break out of the red ocean of bloody competition and make the competition irrelevant by reconstructing market boundaries to create a leap in value for both the company and its customers. Blue Ocean Strategy can be compared to Sun Tzu’s, The Art of War, as the morale of this book is how to…