LEARNING FROM THE 'BLUE OCEAN STRATEGY'

W Chan Kim and Renee Mauborgne claim that Red Ocean Strategy is no longer effective to create growth and profits in the future. They both propose a new strategy called the Blue Ocean Strategy. Blue Ocean Strategy, considers that the competitive market is to create a space that no opponent. A vast market like the "blue ocean".

W Chan Kim and Renee Mauborgne claim that 86% use the Red Ocean Strategy, and only 14% who use the Blue Ocean Strategy. From the company that uses Red Ocean Strategy is to earn a total of 62% and 39% total profits, while companies that use the Blue Ocean Strategy is only getting 38% of total income but total profits 61%.

Cirque du Soleil is one company that uses Blue Ocean Strategy. Cirque du Soleil. Company founded in 1984 by a group of street performer, Cirque has done stage production featuring dozens of visits by about 40 million people in 90 cities around the world. In 20 years, Cirque has achieved revenues worldwide leader circus Ringling Bros and Barnum & Bailey. Both companies are world leaders circus to achieve it took 100 years.

Ringling Bros. and Barnum & Bailey circus to design standards and compete with the circus on a scale similar declining market. Ringling Bros. and Barnum & Bailey uses the perspective of competition-based strategy, so that the circus industry finally appears to be unattractive. While Cirque du Soleil's success by not taking the market from the existing circus industry, the market historically children. Cirque du Soleil does not compete Ringling Bros. and Barnum & Bailey, for creating a new market that no opponent and make the competition irrelevant. Cirque du Soleil brought a new market in addition to the children is a new customer group of adults and corporate clients with not only a circus show, but it displays theater, opera and ballet, so the audience is willing to pay several times more than the usual traditional circus. Strategy of Cirque du Soleil is called Blue Ocean Strategy.

Blue Oceans is a whole industry that is not currently available, not known for its market space and there is no competition. In blue oceans are created that demand, not a hotly contested competition. Demand could grow quickly and profitably. To create blue oceans in two ways, the company can increase a complete new industry, such as eBay to create an auction, but online. The second way, blue oceans can be created from within red oceans when the company changed the existing industry boundaries, as practiced by Cirque du Soleil