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Blue Ocean Strategy

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Despite a long-term decline in the circus industry, Cirque du Soleil profitably increased revenue 22-fold over the last 10 years by reinventing the circus. Rather than competing within the confines of the existing industry or trying to steal customers from rivals, Cirque developed uncontested market space that made the competition irrelevant. Cirque created what the authors call a blue ocean, a previously unknown market space. In blue oceans, demand is created rather than fought over. There is ample opportunity for growth that is both profitable and rapid. In red oceans—that is, in all the industries already existing—companies compete by grabbing for a greater share of limited demand. As the market space gets more crowded, prospects for profits and growth decline. Products turn into commodities, and increasing competition turns the water bloody. There are two ways to create blue oceans. One is to launch completely new industries, as eBay did with online auctions. But it’s much more com

Competitive strategy Blue Ocean Strategy Competing in overcrowded industries is no way to sustain high performance. The real opportunity is to create blue oceans of uncontested market space. by W. Chan Kim and Renée Mauborgne From the Magazine (October 2004) Dolucan/Getty Images Summary . Despite a long-term decline in the circus industry, Cirque du Soleil profitably increased revenue 22-fold over the last 10 years by reinventing the circus. Rather than competing within the ... more Leer en español Ler em português Post Post Share Save Get PDF Buy Copies Print A onetime accordion player, stilt

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