1. Creating Blue Oceans Ch. 1 Group 2
Garrett Blevins, Devin Mcbryde, Ryan Pollard, Devin Roberson

2. Cirque du Soleil
Dominated the Circus industry and achieved a level of revenues that took Ringling Bros. and Barnum & Bailey more than 100 Years to attain.
Cirque du Soleil did this in less than 20 years (in an industry that was declining and with little potential for growth).
How?

3. New Market Space Created uncontested new market space
Made competition irrelevant
Appealed to a new group of customers
First production: “We Reinvent the Circus”
Created a Blue Ocean

4. Blue Ocean vs. Red Ocean Red Ocean:
Represent all the industries in existence today
Referred to as the “known market space”
Industry boundaries are defined and accepted
Companies compete for a greater share of existing demand in the market.
Cut throat competition turns the Red Ocean “bloody”

5. Blue Ocean vs. Red Ocean Blue Oceans:
Represent all the industries not in existence today
Competition is irrelevant
Untapped market space, demand creation, and opportunity for highly profitable growth
Majority of Blue Oceans are created by expanding the existing industry boundaries of a Red Ocean

6. iTunes
With the launch of iTunes, Apple created a Blue Ocean by expanding the existing boundaries of the digital music industry.

7. Competition Creates a bloody ocean
More of a need to create blue oceans because the market is becoming crammed.
Then globalization leads to:
Growing price wars
Declining profit margins

8. Past, Present and Future
Blue Oceans have always been pursued and created naturally.
Businesses and Industries:
are never stagnant
always changing
constantly growing market
competition is never ending

9. Products/Services
What do consumers look at when products or services are similar in quality?
As industries become more bloody(crammed with the same product/service), the need for blue ocean and new unique innovation is a must to stay ahead of the game.

10. The Impact of Creating Blue Oceans
The profit and growth consequences of creating blue oceans
Business launch
86%
14%
Revenue Impact
62%
38%
Profit Impact
39%
61%
86 percent were line extensions

11. The Rising Imperative of Creating Blue Oceans
Accelerated technological advances have substantially improved industrial productivity. (Supply exceeds demand)
The trend towards globalization is causing information on products and prices to become instantly available.
Brands are generally becoming more similar, this is causing consumers to select brands based on price.
The first point relates to the golf industry and titlest because advances in technology has allowed everyone to create a high performing product.
For a long time titlesit was known as the best ball. But know companys have access to the same technology and information so it is narrowing the gap. If you go and research the performance of different brands of golf balls you will find that they are all very similar.
Titlest has now created a blue ocean with the release of the avx ball because it is a premium performing ball at a lower cost.

12. Value Innovation
The creators of blue oceans did not use competition as their benchmark, instead they focused on making there competition irrelevant by creating a leap in value.
Value innovation places equal emphasis on value and innovation.
Value innovation only occurs when companies align innovation with utility, price, and cost positions.
Value without innovation focuses on value creation. Innovation without value tends to be technology driven. It is important to place an emphasis on both because it will make your company stand out.

13. Eight Principles of Blue Ocean Strategy
Formulation Principles
Reconstruct market boundaries
Focus on the big picture, not the numbers
Reach beyond existing demand
Get the strategic sequence right
Execution Principles
Overcome key organizational hurdles
Build execution into strategy
Align the value, profit, and people propositions
Renew blue oceans