The Blue Ocean Strategy is a business strategy framework that W. Chan Kim and Renée Mauborgne developed. It encourages businesses to create uncontested market spaces, or “blue oceans,” rather than competing in crowded and competitive “red oceans.” Blue ocean strategies involve creating new markets or offering products and services with unique value propositions.

Here’s a classic example of a company that successfully implemented the Blue Ocean Strategy:

Cirque du Soleil:
Cirque du Soleil is a world-renowned Canadian entertainment company known for its innovative and artistic approach to circus performances. Before Cirque du Soleil, the circus industry was a traditional red ocean filled with competitors offering similar acts and catering to a primarily family-oriented audience.

Cirque du Soleil adopted a Blue Ocean Strategy by:

1. Eliminating Traditional Circus Elements: They eliminated traditional circus elements like animal acts and high-risk stunts to reduce costs and avoid competition in those areas.

2. Adding Artistic and Theatrical Elements: Cirque du Soleil added artistic and theatrical elements to their shows, creating a unique and sophisticated experience that appealed to a broader adult audience.

3. Targeting a New Market: Instead of competing with existing circuses for the same family audience, Cirque du Soleil targeted a new market segment, including adults seeking high-quality entertainment and corporate clients looking for unique experiences.

4. Premium Pricing: They charged premium ticket prices for their unique shows, allowing them to achieve higher profitability than traditional circuses.

As a result of these strategic decisions, Cirque du Soleil carved out a blue ocean of entertainment, differentiating itself from traditional circuses and becoming a global sensation. Their shows are known for their artistic performances, storytelling, and high-quality production, and they continue to enjoy a unique and profitable position in the entertainment industry.

This example illustrates how the Blue Ocean Strategy can help businesses create new market spaces and stand out from competitors by offering innovative products or services that appeal to different customer segments.