Halo my dearest friends.. how are you today? Please allow me to post an article about Blue Ocean Strategy. This article I had quote from the Books Blue Ocean Strategy How to Create Uncontested Market Space and Make The Competition Irrelevant, written by W. Chan Kim and Renee Mauborgne, published by Harvard Business School Press.
Okay now lets we start with chapter one "Creating Blue Oceans". Cause of this article is one of my topics about Distance Learning Business and Management, so I hope you read this article and find out what does this article meanings for.. Here we go!
A ONE TIME ACCORDION PLAYER, stilt-walker and fire-eater, Guy Laliberte is now CEO of Cirque du Soleil, one of Canada's largest cultural exports. Created in 1984 by a group of street performers, Cirque's productions have seen by almost forty million people in ninety cities around the world. In less than twenty years Cirque du Soleil has achieved a level of revenues that took Ringling Bros and Barnum & Bailey-the global champion of the circus industry-more than one hundred years to attain.
What makes this rapid growth all the more remarkable is that it was not achieved in an attractive industry but rather in a declining industry in which traditional strategic analysis pointed to limited potential for growth. Supplier power on the part of star performers was really strong. So was buyer power. Alternative forms of entertainment-ranging from various kinds of urban live entertainment to sporting events to home entertainment-cast an increasingly long shadow. Children cried out just for video game like Playstations rather than a visit to the traveling circus (how sad). Partially as a result, the industry was suffering from steadily decreasing audiences and, in turn, declining revenue and profits. There was also increasing against the use of animals (like tiger, elephant, bear, etc) in circuses by animal rights group. Ringling Bros. and Barnum & Bailey set the standard, and competing smaller circuses essentially followed with scaled-down versions. From the perspective of competition-based strategy, then, the circus industry appeared unattractive.
Another compelling aspect of Cirque du Soleil's success is that it did not win by taking customers from the already shrinking circus industry, which historically catered to children. Cirque du soleil did not compete with Ringling Bros. and barnum & Bailey. Instead it created uncontested new market space that made the competition irrelevant. It appealed to a whole new group of customers: adults and corporate clients prepared to pay a price several times as great as traditional circuses for an unprecedented entertainment experience. Significantly, one of the first Cirque productions was titled "We Reinvent the Circus".
Okay my friends, that was just only one parts from this topics. For next Distance Learning Business and Management, we will discuss and learn about the topics "New Market Space"