What is an Example of the Blue Ocean Strategy?
The Blue Ocean Strategy, a concept coined by W. Chan Kim and Renée Mauborgne, is a business strategy that aims to create a new market space by breaking away from the competition and establishing a unique position in the market. In this article, we will explore what is an example of the Blue Ocean Strategy and how it has been successfully applied by various companies.
Cirque du Soleil: A Classic Example of Blue Ocean Strategy
One of the most iconic examples of the Blue Ocean Strategy is Cirque du Soleil, a Canadian entertainment company that has revolutionized the circus industry. Founded in 1984, Cirque du Soleil started as a small street performing troupe but eventually grew into a global entertainment empire. By focusing on a unique blend of circus arts, street entertainment, and theater, Cirque du Soleil created a new market space that appealed to a wide range of audiences.
Breaking Away from the Competition
Cirque du Soleil’s success can be attributed to its ability to break away from the traditional circus model. By creating a new and unique entertainment experience, the company was able to differentiate itself from its competitors and establish a loyal customer base. Here are some key strategies that Cirque du Soleil employed to create a blue ocean:
- Differentiation: Cirque du Soleil focused on creating a unique and innovative entertainment experience that combined circus arts, street entertainment, and theater.
- Innovation: The company constantly innovated and experimented with new ideas, styles, and themes to stay ahead of the competition.
- Low Cost: Cirque du Soleil managed to keep its costs low by leveraging its global talent pool and efficient production methods.
- Adoption: The company’s innovative approach and unique entertainment experience helped to attract a new and diverse audience.
Netflix: Another Example of Blue Ocean Strategy
Netflix is another example of a company that has successfully applied the Blue Ocean Strategy. By disrupting the traditional video rental and distribution model, Netflix created a new market space and established itself as a leader in the streaming industry.
Key Strategies
Here are some key strategies that Netflix employed to create a blue ocean:
- Differentiation: Netflix focused on creating a unique and personalized entertainment experience by offering a vast library of content and personalized recommendations.
- Innovation: The company constantly innovated and experimented with new features, such as original content and interactive content, to stay ahead of the competition.
- Low Cost: Netflix managed to keep its costs low by leveraging its global talent pool and efficient production methods.
- Adoption: The company’s innovative approach and unique entertainment experience helped to attract a new and diverse audience.
Conclusion
In conclusion, the Blue Ocean Strategy is a business strategy that aims to create a new market space by breaking away from the competition and establishing a unique position in the market. Companies like Cirque du Soleil and Netflix have successfully applied this strategy to create a new market space and establish themselves as leaders in their respective industries. By focusing on differentiation, innovation, low cost, and adoption, companies can create a blue ocean and establish a loyal customer base.