2. Red ocean: companies compete for
customers
Red ocean strategy
RED OCEAN STRATEGY
Compete in existing market space
Beat the competition
Exploit existing demand
Make the value/cost trade-off
Strategic choice: differenciation OR lower cost
3. Blue ocean: company creates new
market
BLUE OCEAN
Create uncontested market space
Create and capture new demand
Break the value/cost trade-off
Align the company´s activities with the pursuit of differentiation AND lower cost
5. Four Action Framework
• Which of the factors that the industry
Eliminate takes for granted should be eliminated?
• Which of the factors should be reduced
Reduce well below the industry´s standard?
• Which of the factors should be raised
Raise well above the industry´s standard?
• Which factors should be created that
Create the industry has never offered?
6. Four Action Framework
The case of Cirque du Soleil
Eliminate Reduce
•Star performers •Fun and humour
•Animal shows •Thrill and danger
Create Raise
•Theme •Unique venue
•Refined environment
•Artistic music and danse