Discover how Cirque du Soleil created a new, profitable market space with Blue Ocean Strategy.

Blue Ocean Strategy, developed by W Chan Kim and Renée Mauborgne and featured in Harvard Business Review (HBR), is the concept of creating new market spaces and eliminating competition by blurring industry boundaries. This concept was demonstrated by Guy Laliberté in 1984 when he co-founded Cirque du Soleil, which quickly surpassed the revenues of Ringling Brothers in the declining circus business. In a red ocean, companies strive to out-perform rivals and grab a bigger share of existing demand, but in a blue ocean, companies create and capture unknown markets where demand is created. Cirque du Soleil achieved this by making their acts more artistic and sophisticated, eliminating costly animal acts, and creating a new customer base. By pursuing both differentiation and low cost, or value innovation, Cirque invented a market space that was hard to copy, resulting in a profitable business over 10 to 15 years.

Learning Outline

1. Business universe consists of two kinds of markets: red oceans and blue oceans
2. Red oceans represent existing industries and markets where industry boundaries and the rules of competition are well-defined
3. Blue oceans are about how to create and capture unknown markets where demand is created rather than fought over
4. Blue ocean strategy involves simultaneous pursuit of differentiation and low cost (value innovation)
5. Benefits of creating blue oceans usually last for 10 to 15 years due to difficulty of copying
6. Companies should chart a strategic course past traditional industry boundaries to create new market space

Instructional Content

The Explainer: Blue Ocean Strategy

Blue Ocean Strategy, a concept developed by professors W Chan Kim and Renée Mauborgne, is a business strategy that seeks to create new and profitable market spaces outside of the well-defined boundaries of traditional industries. This type of strategy is often seen in the success story of Cirque du Soleil, a company founded in 1984 by Guy Laliberté that quickly achieved revenues that incumbents like Ringling Brothers had taken more than a century to attain, despite the fact that the circus business was in long term decline.

Cirque du Soleil was able to thrive despite the dismal environment by adopting a Blue Ocean Strategy, which allowed them to create a new and more profitable market space. They did this by making the circus acts more artistic and sophisticated, which drew in a whole new group of customers who were willing to pay premium ticket prices. They also eliminated several costly elements of the traditional circus, including animal acts and star performers. This allowed them to pursue both differentiation and low cost in what Kim and Mauborgne called value innovation.

The simultaneous pursuit of value and cost is the logic of Blue Ocean Strategy, and companies that can create these blue oceans can benefit from them for a period of 10 to 15 years since they are hard for rivals to copy. In order to realize the potential of a Blue Ocean Strategy, companies should chart a strategic course that goes beyond existing industry boundaries to create new market space.

The concept of Blue Ocean Strategy is an innovative way of thinking about how to create new and profitable market spaces and achieve success in any industry. By taking the time to explore this concept, companies can find ways to differentiate themselves from the competition and create value for their customers.

Management

"Unlock Blue Ocean Management"

Business and Enterprise:

In order to improve Management skills in learners, it is necessary to understand the fundamentals of business and enterprise. The Blue Ocean Strategy, as demonstrated in the video and transcript, provides a great example of how to create a successful business by breaking away from traditional industry boundaries. By understanding the concept of a red ocean and blue ocean, learners can gain an understanding of how to create a profitable market space without having to make the typical trade offs between value and cost. Additionally, understanding the concept of value innovation, as outlined by Kim and Mauborgne, learners can gain a deeper understanding of how to differentiate their products and services while still keeping costs low.

Creativity and Innovation:

Creativity and Innovation are key components to success in the business world. The Blue Ocean Strategy provides learners with a unique approach to developing creative ideas and creating new markets. By understanding the concept of the Blue Ocean Strategy, learners can gain an appreciation for how to think outside the box and come up with innovative solutions to existing problems. Additionally, the concept of value innovation allows learners to develop creative ways to differentiate their products and services, while also keeping costs low.

Strategic Thinking:

Strategic Thinking is essential for success in the business world. The Blue Ocean Strategy provides learners with a unique approach to strategic thinking, by allowing them to think outside of traditional industry boundaries and develop innovative solutions to existing problems. Additionally, learners can use the concept of value innovation to develop creative solutions to increasing profits while keeping costs low. By understanding the concepts outlined in the Blue Ocean Strategy, learners can gain a better understanding of how to develop strategies that will help their businesses succeed.

Business and Enterprise

"Blue Ocean Strategy: Business?"

Upskilling yourself to be more successful in personal growth and professional development involves understanding how to create and capture unknown markets. The Blue Ocean Strategy, pioneered by W Chan Kim and Renée Mauborgne, provides an effective framework to help businesses do just that. The video “The Explainer: Blue Ocean Strategy” illustrates how Cirque du Soleil revolutionized the circus industry and created an entirely new market space through value innovation. By combining elements of both theater and circus, Cirque du Soleil attracted a new demographic of adults willing to pay premium prices. Cirque also eliminated certain costly elements of traditional circuses, like animal acts and star performers, and thus achieved both differentiation and low cost. As a result, the company was able to reap the benefits of the blue ocean for 10 to 15 years, as it was hard for rivals to copy.

This Blue Ocean Strategy concept can be applied to personal growth and professional development. The key is to break away from traditional boundaries, think outside of the box, and create new opportunities for yourself. By staying ahead of the curve and spotting potential new markets, you can gain an advantage over your competitors and be more successful. To upskill yourself, make sure to stay informed of the latest trends and technologies, and be open to new ideas. This will help you create innovative solutions and increase your chances of success.

Creativity and Innovation

Can Blue Ocean Spark Innovation?

Upskilling yourself to be more successful in personal growth and professional development can be greatly impacted by understanding the concept of blue ocean strategy. Blue ocean strategy is a market-creating strategy that enables a company to create entirely new markets and industries. As demonstrated in the example of Cirque du Soleil, a traditional circus struggling in a dwindling market, this strategy involves altering existing industry boundaries to create a new and profitable market space. This can be achieved through the pursuit of both differentiation and low cost, or “value innovation” as outlined by professors W Chan Kim and Renée Mauborgne. The strategy of blue ocean strategy is a powerful tool for upskilling yourself to be more successful in personal growth and professional development, as it allows you to move away from competing in a crowded and competitive red ocean and carve out a new and profitable space for yourself. This can be done by creating unique products or services, finding new ways to deliver existing products or services, or combining existing products and services in novel ways. By doing so, you can differentiate yourself from existing competitors, capture new and untapped markets, and create a sustainable and profitable business. Additionally, blue ocean strategy can give you a competitive advantage over your competitors, as it can be difficult to replicate. This is evidenced by the success of Cirque du Soleil, which has been around for over 30 years and continues to be a top draw in the entertainment industry. By leveraging the power of blue ocean strategy, you can upskill yourself to be more successful in personal growth and professional development and create a profitable and sustainable business.

Strategic Thinking

Can Strategy Create Opportunity?

Upskilling yourself to be more successful in personal growth and professional development is a process that requires strategic thinking. One of the most successful examples of this type of thinking is the Blue Ocean Strategy. This strategy, pioneered by W Chan Kim and Renée Mauborgne, is based on the idea that the business universe is made up of two kinds of markets: red oceans and blue oceans. Red oceans represent existing industries and markets where the rules of competition are well-defined and companies are vying for share of the existing demand. Blue oceans, on the other hand, are new and unknown markets in which demand is created rather than fought over.

One great example of this is the success of Cirque du Soleil. Co-founded in 1984 by Guy Laliberté, Cirque du Soleil was able to bring in revenues that Ringling Brothers had taken over a century to attain, despite the circus business being in long-term decline. This was achieved by blurring the line between circus and theater, thereby creating a new and profitable market space. Cirque was able to make their acts more artistic and sophisticated, thus appealing to a new group of customers. This value innovation allowed them to simultaneously pursue differentiation and low cost, propelling them to the top of their industry and securing them a place in the annals of business history.

By understanding the Blue Ocean Strategy, individuals can upskill themselves to be more successful in personal growth and professional development. Knowing how to create blue oceans and capture unknown markets can help individuals find new and innovative ways to add value and stand out from their competition. This knowledge can help individuals achieve success and potentially create their own success story.

For Learners

Watching the video The Explainer: Blue Ocean Strategy will provide a positive benefit to you as a life long learner. By understanding and learning the content in this video, you will gain the knowledge and skills to create value innovation and identify new market spaces that can be profitable for your business or organization. The information contained in this video enables you to understand the concept of blue ocean strategy, which is about creating and capturing unknown markets where demand is created rather than fought over. Additionally, by watching this video, you can better understand the value of differentiating from competitors and the importance of pursuing both differentiation and low cost.

On the other hand, a negative detriment to not learning the content of this video is that you will not be able to effectively use blue ocean strategy to create and capture unknown markets. Moreover, you will miss the opportunity to learn about value innovation, which provides the potential to create profitable market spaces. As a result, you may not be able to maximize the potential of your business or organization.

Using the ‘what’s in it for me’, ‘what’s in it for them’, ‘what’s in it for us’, and ‘what’s in it for the world’ approach to learning the content of this video will benefit you as a learner for personal growth and professional development. By understanding and using blue ocean strategy, you will be able to create value innovation and create unknown markets that can be profitable for your business or organization. Additionally, learning the content of this video will enable you to better understand the value of differentiating from competitors and the importance of pursuing both differentiation and low cost, which will allow you to maximize the potential of your business or organization. Furthermore, by understanding the concept of blue ocean strategy, you will be able to help your business or organization to remain competitive in the market and realize long-term success. Finally, learning the content of this video will also benefit the world by creating new markets and value innovations, which can contribute to the overall development of the economy.

For Employers

Watching this video, The Explainer: Blue Ocean Strategy, and understanding the concepts behind it can be incredibly beneficial for employers and their teams. By learning the content of this video, employers can differentiate themselves from their competitors, as understanding the concepts of blue ocean strategy can give them a unique edge in the market. Employers can position themselves as forward-thinking and innovative, as blue ocean strategy encourages companies to explore new market spaces and create new products and services that appeal to a wider audience. This can help employers increase their market share and create a more successful business.

Customers and clients will also benefit from employers understanding the concepts in this video, as they can create products and services that are tailored to their needs. Employers will be able to identify customer needs better and come up with creative solutions that stand out from the competition. This will give customers a better experience and make them more likely to choose the employers’ products and services over those of their competitors.

Finally, understanding blue ocean strategy can help employers create long-term success. By pursuing both differentiation and low cost, employers can create a value innovation that is hard to copy and can reap the benefits for 10 to 15 years. This makes it a great way for employers to ensure their business’s long-term success.

In conclusion, understanding the concepts behind blue ocean strategy can be incredibly beneficial for employers and their teams. It can help them differentiate themselves from the competition, create better products and services for customers and clients, and ensure long-term success. Now is the time for employers to embrace blue ocean strategy and get ahead of their competition.

Career Path

Completing a course in Management based on these competencies: Business and Enterprise, Creativity and Innovation, and Strategic Thinking could be a crucial step in helping your career path. These competencies will equip you with the skills and knowledge required to become more employable, promotable, and purposeful.

Watching a video like The Explainer: Blue Ocean Strategy and learning from its transcript can help you gain income-producing skills and enhance your employability. The video outlines the concept of red and blue oceans – red oceans representing existing industries where competition is fierce and blue oceans representing unknown markets where demand is created. It explains how Cirque du Soleil blurred the line between circus and theater, creating a new and profitable market space without making the typical trade-offs between value and cost. The video also explains the concept of Value Innovation and how companies who pursue it can reap the benefits for 10 to 15 years.

By learning from this video and transcript, you will be able to level up your skills and close the skills gap in order to pursue meaningful work in the future in high demand and high growth industries. With these income-producing skills, you will be able to better your employability and be better prepared to take on new challenges in the future.

Meaning

"The wise man finds a new way; the fool follows the old." -Chinese Proverb

This Chinese proverb perfectly encapsulates the concept of Blue Ocean Strategy. The video explains how Cirque du Soleil was able to thrive in a declining circus industry by creating a new market space and appealing to a different audience. By blurring the lines between circus and theater, Cirque was able to differentiate itself from the competition and create a unique value. The company pursued both differentiation and low costs in order to maximize value. This strategy of creating new market space is known as Blue Ocean Strategy and has been shown to be highly successful.

This quote emphasizes the importance of taking a creative and unique approach to business. Rather than competing in existing markets, learners and employers should find innovative ways to create new market spaces and differentiate themselves from the competition. By following this advice, learners and employers can reap the benefits of Blue Ocean Strategy for years to come.

Takeaway

Blue Ocean Strategy emphasizes the importance of creating new market space instead of competing in existing markets. Companies should strive to differentiate and innovate to create value, while also reducing costs to maximize profitability. This strategy can be highly profitable and hard to replicate, leading to long-term competitive advantage.