1. Creating Blue Oceans

2. Jills slides
Blue Ocean?

3. Guy Laliberte

4. Cirque de Soleil Created a new market space New target audience
Eliminated star performers and animals
Blended opera and ballet

7. Impact of creating blue oceans

8. Are there lasting “excellent” or “visionary” companies that continuously outperform the market and repeatedly create blue oceans?
In Search of Excellence- published 20 years ago
2 years of publication, several companies slipped
2/3 firms had fallen

9. Built to last
sought out the “successful habits of visionary companies”
followed same foot steps

10. How to Have a Strategic Move
Managerial actions
Managerial decisions

11. Examples
Ford GM
CNN

12. Analysis of Becoming a Blue Ocean Company
No distinction between the two groups
Achieved by small and large companies
Young and older managers
Attractive and unattractive industries
The analysis failed

13. The Cornerstone Value Innovation Value Creation
Equal importance of value and innovation
Value Creation
Creates value without innovation
Does not stand out in marketplace
Innovation Without Value
Technology-driven, market pioneering, futuristic
Product that is more advanced than what consumers are ready for.

14. Value Creation
Used Jordan’s Image
Created Value on Shoes

15. Innovative Technology
Little value created
Market pioneering

16. Value Innovation Aligns innovation with Ignores value-cost trade-off
Utility
Price
Cost
Ignores value-cost trade-off
Pursues differentiation and low-cost
Not just about innovation
Whole system approach

17. Atari Corporation: PONG
Tennis Sports Game
Led to the start of the video game industry

18. Value Innovation: Cornerstone of Blue Ocean Strategy
Cost savings are made by reducing the factors an industry competes on
Buyer value is lifted by raising and creating elements the industry has never offered

19. Circus Market Shrinking circus market
Circuses used benchmarking to compete
Best clowns and lion tamers
Pushed up costs
No increased revenue
Resulted in drop in demand for traditional circus

20. Cirque du Soleil New form of live entertainment
Attracts adults and kids
Kids - circus market
Adults - theater market
Great combination for families
Circus/Theater
Combined excitement of circus with the “intellectual sophistication and artistic richness” of the theater

21. Cirque du Soleil Clowns Tent Acrobats Created theme
Circus
Theater
Clowns
More sophisticated
Less slapstick
Tent
Prettier outside
More comfortable inside
Acrobats
Made more elegant and artistic
Created theme
Story line
Different productions
Included original and unique score
Featured dance
From theater and ballet

22. Cirque du Soleil

23. Blue Ocean Cirque du Soleil created a blue ocean
Drew from circus market
Drew from theater market
No direct competitors
Priced against theater tickets
Aligned innovation with utility, cost and price

24. Importance of Blue Oceans
Accelerated technological advances
Improved productivity
Wide range of products and services
Supply exceeds demand
No evidence of demand increase
Brands are becoming similar
Hard to differentiate
Select based on price

25. Formulating and Executing Blue Ocean Strategy
Always involves opportunity/risk
Red Oceans continue to dominate
Playing field is unbalanced in favor of tools and analytical frameworks

26. Formulating and Executing Blue Ocean Strategy

27. Can anyone give an example of a company that used blue ocean strategy?

28. Class Takeaways