Summary
Highlights
Cirque du Soleil applied the framework by: REDUCING the thrill and danger of conventional circuses; ELIMINATING animals, star performers, and multiple show arenas; CREATING dramatic themes, artistic music and dance, and a refined environment; and RAISING the uniqueness of the venue by developing its own tents.
Cirque du Soleil (Circus of the Sun) is a Canadian circus company that thrived despite a struggling circus industry. The traditional circus faced challenges such as powerful star performers, rising competition from other entertainment forms, and pressure from animal rights groups.
Cirque du Soleil redefined the industry by eliminating animals and reducing the importance of individual stars. It created a new form of entertainment combining dance, music, and athletic skill, targeting a classy adult audience that had abandoned traditional circuses. This approach is an example of the Blue Ocean Strategy.
The video plots a strategy canvas, comparing Cirque du Soleil with competitors like Ringling Bros. & Barnum and Bailey. It then introduces the 'Four Actions Framework' used by Cirque du Soleil to create a 'calm blue ocean' (uncrowded market space).
The blue line on the strategy canvas clearly shows how Cirque du Soleil differentiated itself from competitors. Instead of competing for a shrinking market, it appealed to a new demographic of adults and corporate clients willing to pay higher prices for a unique entertainment experience. One of their first productions was even titled “We Reinvent the Circus.”
Cirque du Soleil achieved in less than twenty years the revenue levels that took Ringling Bros. and Barnum & Bailey over a hundred years. The core of the Blue Ocean Strategy is not to beat the competition, but to make it irrelevant. The video concludes by suggesting that successful ventures often embody elements of this strategy and quotes Peter Thiel, advising to find a strong belief about your industry that no one else holds and build your startup around it.