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IMPERIAL, Kirsten Mireille P.

Blue Ocean Strategy

STRATMA K37

a) Blue ocean strategy differs from traditional, conventional strategies that embody the value-cost tradeoff and aim to compete with rivals. For me, a difference between blue ocean and red ocean strategies is
the way they perceive strengths. It could be said that red ocean strategies tend to view strengths as those
which the company does better compared to its competitors. In contrast, blue ocean strategies view
strengths as those which the company is best at doing, regardless of its competitors. Rather than
competing with rivals, blue ocean strategies create a new market space and see competition as irrelevant.
They embody value innovation instead of the value-cost trade-off, aligning innovation with utility, price,
and cost positions. Instead of comparing themselves with their competitors, blue ocean companies focus
on integrating its own functional and operational activities. Also, compared to red ocean strategies that
choose between differentiation and low cost, blue ocean strategies pursue both. All in all, red ocean
strategies stay in the comfort zone, while blue ocean strategies get out of it thats why its more risky.
They are all about being unique and creating and capturing new demand. Thus, creativity also contributes
to the success of blue ocean strategies.
b) Cirque du Soleil achieved Blue Ocean by reinventing the circus. Their business model involved
making a whole new circus concept and appealing to a new market - adult theatre customers. Instead of
aiming to do better in the things that companies in the circus industry usually do, they redefined the circus
and offered customers not only circus thrills but also intellectual sophistication. They werent merely
using animals, star performers, multiple show arenas, usual acrobatic acts, and aisle concessions. Cirque
du Soleil made its customers see circus as an art, resembling a theater performance by having a story line,
artistic music and dance, and multiple productions. People were actually willing to pay more to
experience this redefined circus compared to experiencing the traditional circus. The company was able to
price its tickets higher than theater prices and still price its productions to capture its target market. It
embodied value innovation, achieving both differentiation and low cost by eliminating the traditional
costs of the circus and providing a new form of live entertainment.
c) Blue Ocean Strategy is definitely still possible in this post-information, post-modern era. Industries are
continuously evolving, so is technology. Advancements in technology provide companies endless
possibilities for reinventions and reconstruction of market boundaries. There would always be market
spaces yet to be explored and demands yet to be captured. Blue ocean companies could take these
technological advancements to their advantage by using technology to differentiate themselves among
competitors, innovating their ideas/concepts and creating value for buyers and the company.

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