A Summary of Blue Ocean Strategy
Cirque was started or founded in the year 1984 by street performers and had a fast growth not by competition but rather through uncontested market space making competition irrelevant. It attracted new group of clients who were willing to higher prices than the cost of a typical circus ticket for an extraordinary entertainment experience. Understanding achievement natures of Cirque needs recognizing that business world consist of blue and red oceans.
Red oceans represent current industries in existence; that is, known market space. Industry boundaries are accepted and defined, and rules of competition are fathomed. On the contrary, Blue Ocean refers to all the industries currently not in existence, that is, unfamiliar market space, unachieved by competition. Demand is established instead of fighting over it. A blue ocean can be established from within Red Ocean if a company changes the boundaries of available industry. Cirque is, therefore, one of the Blue Oceans.
Blue oceans do not concern technology innovation. Nonetheless, leading-edge technology at times is adopted in establishing Blue oceans, though it is never a describing characteristics of them. An example can be the computer industry, which never came about because of technology innovations alone, though came about through linking technology with what consumers valued. Creating blue oceans establishes brands. Blue ocean strategy is so powerful that it may establish brand equity lasting for decades. The results of research done on blue ocean strategy are encouraging or motivating for executives in large, established corporations, which are traditionally viewed as the victims of novel market space creation. In summary, the most significant defining feature of blue ocean strategy involves rejecting the principal tenet of the common strategy.
