Groupon Issue Essay
9/10/10 5:34 PM
Blue Ocean Strategy by W. Chan Kim and Renée Mauborgne
A onetime accordion player, stilt walker, and fire-eater, Guy Laliberté is now CEO of one of Canadaʼs largest cultural exports,
Cirque du Soleil. Founded in 1984 by a group of street performers, Cirque has staged dozens of productions seen by some 40 million people in 90 cities around the world. In 20 years, Cirque has achieved revenues that Ringling Bros. and Barnum &
Bailey—the worldʼs leading circus—took more than a century to attain.
Cirqueʼs rapid growth occurred in an unlikely setting. The circus business was (and still is) in long-term decline. Alternative forms of entertainment—sporting events, TV, and video games—were casting a …show more content…
Blue oceans denote all the industries not in existence today—the unknown market space, untainted by competition. In blue oceans, demand is created rather than fought over. There is ample opportunity for growth that is both profitable and rapid.
There are two ways to create blue oceans. In a few cases, companies can give rise to completely new industries, as eBay did with the online auction industry. But in most cases, a blue ocean is created from within a red ocean when a company alters the boundaries of an existing industry. As will become evident later, this is what Cirque did. In breaking through the boundary traditionally separating circus and theater, it made a new and