Post on 17-Jan-2018
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Creating Blue OceansCole Bengford
Weizhou LinJonathan Hoelzer
Creating a New PathCirque du Soleil
Guy Laliberté – CEOAchieved remarkable growth in poor market“Only way to beat the competition is to stop
trying to beat the competition.”
New Market SpaceTo understand what Cirque du Soleil achieved, imagine two market places:
Red Ocean- • Represent all industries in existence • The known market space
Blue Ocean – • Represent all industries not in existence • The unknown market space
Red OceanIndustry boundaries are defined and accepted Companies try to outperform each other Cutthroat competitionFish Market
Blue OceanUntapped market spaceDemand creationHighly profitable growthMost blue oceans created within industry
boundaries Competition is irrelevant 3M Science
About 3M• Founded 1902 originally as Mining Venture• Formerly Known as Minnesota Mining and
Manufacturing Company• American Multinational Conglomerate
Company• $30 billion in Sales• Employs 88,000 people worldwide
3M ContinuedProduces more than 55,000 products(adhesives,
abrasives, laminates, passive fire protection and even medical supplies)
Operations in more than 65 Countries3M products available for purchase through
distributers and retailers in over 200 countriesAchievements' recognized by American Institute
of Management “one of the five best-managed companies in the
United States
http://txmqstaffing.com/fishing-in-a-blue-ocean/
Competition and Red OceansAs similar-product prices gradually rise, we focus
more on the “price of the sale” rather than the product.
Crest may be your brand choice, but Colgate might have a special price cut.
Red ocean intensifies Blue ocean created out of boundaries within red
oceans Industry boosts from competition within red
oceans
3M CompetingCompany competes with innovationWaterproof Sandpaper and masking tape, as well as
cellophane aka Scotch Tape.Unique Sound deadening products for carsProduced Several models of Magnetic Tape Recorders that
still have a following to this day3M’s main competitor is GE(General Electric) and others
include Danaher(DHR) and Tyco International(TYC)3M is so successful based off controlling such a large market
share and continue to develop new products in other markets therefore increasing revenue and competition
3M3M relates to that of Cirque du Soleil’s
success with expanding into new uncontested market space
This made competition irrelevantFor example 3M in the 1970’s created a board
game line, entering a new market that was not as contested at the time, allowing 3M to again thrive in markets other than production of Adhesives etc..
From Company to Industry to Strategic Move In the Search of Excellence and Built to Last
Companies in survey disappeared within 2 yrs of publication
HP success was of industry success not the company, Japanese companies as well
Cirque du Soleil entertainment (blue ocean market)Strategic (market creating) move, not company or industry,
Compaq not independent, server industry comeback Strategic Move (auto, Ford Model T, computer, Compaq
Server, cinema, Cirque du Soleil entertainment )
Value Innovation: The Cornerstone of Blue Oceans StrategyValue innovations vs. value creationValue Innovation - focus not on competitors, value
and innovation.Adding value, innovations and lowering costCirque du Soleil – Circus, tents , clowns,
acrobatics. Theater performance, multi production pricing (Broadway Shows)
Value Innovation: The Cornerstone of Blue Oceans Strategy Cont.
Formulating and Executing Blue Ocean Strategy