In these cases, the success results from good luck, but not from the strategy. That means reducing the pace of business growth, except for the cases when the profitability increases due to the successes in the industry. Red ocean, dominated by competition-based strategy of reducing the costs and expenditures. The authors divide the market into two “oceans”: The key to success is simple – the company provides the best theater and circus experience and eliminates all the other elements. It took them to decades to make the progress, that had taken the other circus troupes a century. However, even in those circumstances, " Cirque du Soleil" managed to become one of the largest Canadian companies exporting culture. Children asked their parents for video games more than for circus tickets. The company started and developed when the circus industry was largely in a state of decline. This company has gained over 150 million of spectators from all over the world for 20 years of work. “ Cirque du Soleil” circus success is given as an example. The idea about beginners’ advantage is wrong, everybody has their chances, including the market old-timers. “Value innovation requires companies to orient the whole system toward achieving a leap in value for both buyers and themselves.”īook’s authors Chan Kim and Renee Mauborgne argue that any businessman can find an own “blue ocean”.
It is important here that the innovation should become popular and hit the target. “Blue ocean” is a calm harbour, untapped new market spaces ripe for growth, where there are minimum risks of losing due to competition. It can also be a blast from the past, updated according to the market requirements. “Blue ocean strategy” is a book about how to step away from the battle field and make up something new. Business ocean has grown red, clouded by the blood of competitors. Some of rivals fall dead in this fight, others have to constantly create something new, reduce the prices or expand the product range, to stay in the market.
The competition between companies is rising by the day. Blue ocean strategy: how to create uncontested market space and make the competition irrelevantĬompetition is a basis for any sound business.
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