Blue Ocean Strategy

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When Cirque du Soleil appeared, the traditional strategic approach began to fail. Cirque du Soleil has not focused on competition

When Cirque du Soleil appeared, the traditional strategic approach began to fail. Cirque du Soleil has not focused on competition, either in traditional circus performances or in classical theatre products. Unlike the logic of the traditional catch-up competitive strategy, it does not provide a better solution to the existing problem, such as creating more funny or exciting effects, but provides two products to the audience at the same time: combining the comedy and adventure of the circus with the technical synthesis and artistic appeal of the stage play; thus, it redefines the problem itself. By breaking down the boundaries between circus performance and stage play, Cirque du Soleil won over not only circus audiences, but also non-circus audiences-adult audiences who patronized the theater. This creates a new circus concept, breaks the value-cost relationship and opens up a blue ocean as a new market space. Now let's think about the difference. While other circuses still focus on providing animal performances, hiring star performers, using complex stages and on-site concessions, Cirque du Soleil has completely abandoned these practices. For a long time, the above practices have been fully affirmed in the traditional circus industry and have never been questioned. However, public dissatisfaction with animal performances is growing, and the price of animals themselves, as well as the cost of training,plastic pallet suppliers, medical treatment, special accommodation, insurance and transportation, makes animal performances one of the most expensive items in circus performances. 20. For previous work challenging this dogma, see, for example, Charles w. l. Hill (1988) and R. e. white(1986)。 21. For a discussion of the need to choose between differentiation and low cost,ibc spill containment pallet, see porter (1980, 1985). In porter (1996), the possibility boundary curve of productivity is used to describe the relationship between value and cost. Our research reveals that value innovation is a redefinition of the problem itself; it is no longer a solution to an existing problem. Similarly, if the circus industry focuses on star performers, then the so-called "circus stars" are not comparable to movie stars in the public mind, and they are also high-cost factors that can hardly affect the number of audience changes. As for the compound stage, because of the frequent change of the performance stage, not only the audience is upset, but also the number of actors will inevitably increase, resulting in a significant increase in costs. Although on-site franchise sales have increased total revenue, the high prices of licensed goods have made the general audience feel that they have been ripped off. The appeal of traditional circus performances eventually narrowed down to three elements: tents, clowns, plastic pallet manufacturer ,collapsible pallet bin, and acrobatic performances such as unicycles or dwarfs. So Cirque du Soleil kept the clown, but changed the clown's humor from farce to a more charming and delicate form. Because Cirque du Soleil believes that the tent is a symbol of the magic of the circus, it not only continues to use the tent as a performance venue, but also has a classical interior luxury design for the tent, which reminds people of the glory of the circus in the past. Ironically, many other circuses have abandoned their tents in favor of renting venues. Cirque du Soleil also retained its acrobatics and other thrills, but shortened the performance time and made it more elegant through artistic expression and technical packaging. By borrowing from theatrical performances, Cirque du Soleil has added non-circus elements, such as story lines, more interesting plots, artistic singing and dancing performances, and other diversified artistic elements. These factors, which come from the alternative theatre performance industry, are new creations for the circus industry. Traditional circuses often provide a series of unrelated performances. In contrast, every Cirque du Soleil show has a theme or story line that is actually a restructuring of the stage show. Although the theme is intentionally vague, this allows the various artistic elements to be unrestricted and harmoniously unified. Cirque du Soleil also drew inspiration from Broadway performances, combining music, visual effects, lighting and performance into one furnace, changing the original single form of performance. In the performance, it also draws lessons from the practice of theatre and ballet, which makes the dance more expressive and vivid. By introducing these new elements, Cirque du Soleil creates an exquisite form of performance. More importantly, by injecting these new elements, Cirque du Soleil has given people more reasons to watch circuses, and the market demand has expanded rapidly. In short, Cirque du Soleil takes the essence of circus performance and theatre performance, and forms a new way of entertainment different from traditional circus and theatre performance, thus creating a blue ocean field. At the same time, by cutting a large number of high-cost circus performances, Cirque du Soleil's cost has been greatly reduced, achieving both differentiation and low cost. Cirque du Soleil has strategically set its own ticket prices based on the ticket prices of theatrical performances. Although the ticket prices are several times higher than those of the original circus performances, they still attract a large number of adult audiences, because the price is not high compared with theatrical performances. Figure 1-2 depicts the differentiation-low cost dynamics that are the foothold for value innovation. Figure 1-2 Value Innovation: the Foundation of Blue Ocean Strategy When the enterprise behavior brings the positive influence to the enterprise cost structure and the customer value simultaneously, the value innovation can be realized in this intersection region. Cost savings occur through the elimination or compression of certain competitive factors, and over time, the economies of scale brought about by value creation further contribute to cost reduction. As shown in Figure 1-2, the creation of blue ocean is to create value for customers while reducing costs, so as to achieve the simultaneous improvement of enterprise value and customer value. Because customer value comes from the utility that the firm provides to customers at a lower price, and the value of the firm depends on price and cost structure,plastic pallet crates, value innovation can only occur when the utility, price, and cost behaviors of the entire firm are correctly integrated. Blue ocean strategy is implemented in all functional and operational departments of the enterprise.