Blue Ocean Strategy Summary Cirque du Soleil is one of the success stories of the circus industry. This was a surprise considering that the circus industry was on the decline. Instead of copying the circus blueprint used by their competitors, Cirque knew it had to offer something different to be able to compete in the market. But instead of taking customers away from other circuses, Cirque created a new market out of nothing. Instead of working in a red ocean, Cirque tried to create a blue ocean out of an already existing red ocean.
A blue ocean is an industry that is completely new and has never been attempted before. This is not exactly true with Cirque because the circus industry already existed. What Cirque did do was take a struggling industry and turn it around by creating a new customer market for it. Cirque mixed elements of the circus and of the theater in order to give its viewers a unique circus experience. The types of people attending their shows were not regular circus goers, but everyday average people. Blue oceans are always likely to succeed due to the innovation that goes with them.
Red oceans rely on the tried and trusted values that have previously worked so well. There is not much room for growth in red oceans because the products are generally the same over and over again. The reason why many companies fail to make an impact in their respective industries is because they are trapped in red oceans. They are not willing to take a risk and try something different. Red oceans try to attract already existing customers to their brand, whereas blue oceans create new customers out of nothing.
Blue oceans do not have to reinvent the wheel; all they have to do is take an already existing idea and expand on it. Many companies fail to realize that blue oceans can be created out of red oceans. All a company has to do is look for a product that will thrive in a new market. It does not require a new injection of funds, but rather a redirection of already existing funds.
Another positive to blue oceans is that they often last for a very long time. Because they create a new customer market, these customers will likely use that brand for the rest of their lifetimes. The thing that makes blue oceans stand out is that they pursue low cost and high value at the same time. Cirque is a very good example of this because the company cut circus acts that were too expensive to maintain and replaced them with elements from the theater. Because people want to experience a show when they go to the circus, having a theatre-style circus suits many people’s needs.
Cirque took a gamble when it tried to introduce a new style of circus, but this has more than paid off. Red oceans are not consigned to thinking inside the square reap the rewards of this thinking.