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Blue Ocean Strategy

Create New Markets

Liliana Bau

on 17 April 2013

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Transcript of Blue Ocean Strategy

Cirque Du Soleil Blue Ocean Strategy In blue oceans, demand is created rather than fought over. Red Oceans Which are Cirque du Soleil profitably increased revenue twenty-two-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 are two ways to create blue oceans 1.- To launch completely new industries, as eBay did with online auctions. But it's much more common for a blue ocean to be created from within a red ocean when a company expands the boundaries of an existing industry.

2.-The most appropriate unit of analysis is the strategic move, the set of managerial actions and decisions involved in making a major market-creating business offering. 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. Creating blue oceans builds brands. So powerful is blue ocean strategy, in fact, that a blue ocean strategic move can create brand equity that lasts for decades. the characteristics of the target market of
Cirque Du Soleil? http://youtube.googleapis.com/v/98X3_X_VG-8&source=uds&autoplay=1 1.- Live Music, No Animals
2.-Customs, Make Ups, Show, Performance
3.-Expensive but worth it (exclusive)
4.-Update the shows, Tropicalize
5.- Stonish, Lay Out for the audience. Dreamers, Interested in Culture, Difficult to Impressed, Familiar Entertainment, Recognizment, Socioeconomical A Market.
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