The analysis is aimed at reviewing Cirque du Soleil’s strategic approaches to gaining its blue ocean strategy and accomplishing a sustainable competitive advantage. The history of the circus’s development is presented along with the discussion of it’s the factors influencing rivalry in the sector. Accomplishing the blue ocean strategy by Cirque du Soleil is analyzed through the assessment of relevant criteria specific to the industry in question.
The story of Cirque du Soleil illustrates four facets of industry competition. The sector’s foundation helps eliminate the trade-offs between differentiation and price. The four primary dimensional activities of the framework address the industry’s differentiating and cost-reduction challenges (Bhargava, 2017). The industry considers elimination, which encompasses variables below the industry’s level and results in unneeded costs. In addition, their contribution to the industry’s profit is negligible (Bhargava, 2017). It is effective for organizations to lower expenses, thereby keeping the stability of their profit and raising the quality and quantity of their products to remain competitive in the marketplace (Bhargava, 2017). However, the corporation cannot compete within the circle if it disregards revenue-enhancing elements (Harvard Business Review, 2017). To enhance client demand for goods, the industry must examine things it has never provided (Bhargava, 2017). These criteria are the most influential in determining how industries compete. The figure of Sun Circus ERRC grid gives the four facets of the industry competition (Hamra and Gassabi, 2021). The grid description is given in Table 1 below.
Table 1. Sun Circus ERRC grid
The history of the circus development cannot be regarded as long. In 1980, three-ring circuses, animal acted, and clowns dominated the entertainment industry (Generalsasso, 2006). Families, particularly children, comprised the majority of circusgoers at that time. Cirque du Soleil became increasingly competitive to attract more exotic animals and performers. The value of the circus began to rise without regard to the quality or quantity of consumers (Bhargava, 2017). In addition, there was a rise in animal cruelty, which prompted public outrage, particularly from animal rights organizations.
The canvas tactic recognizes the Cirque du Soleil strategy. Cirque du Soleil methods that should be included in the canvas are the uniqueness of the location, the accompanying sales, fun and a sense of humor, a multiple-show venue, and the capacity to detect danger and stress (Bhargava, 2017). In addition, the circus examined eliminating and minimizing components that were utilized in conventional circuses that were expensive and of no benefit to the audience (Bhargava, 2017). The circus believed that constructing blue waters would result in the formation of uncontested markets incapable of supporting the competition.
By introducing production value and artistic aspects, Cirque du Soleil remade the market’s borders and reached the blue ocean. These were the most important features absent from conventional circuses (Bhargava, 2017). The canvas supplied superior customer value that reduced expenses and provided clients with high-quality services (Bhargava, 2017). Some assumptions created by the circus industry in the red ocean included making unsustainable strategies like focusing on non-customers; hence, managers thought they could create new niche markets that were profitable. Due to unstainable techniques that managers were using in the red ocean that made them lose customers, managers realized that they needed to win the future through Cirque du Soleil. This was done through the creation of a market boundary. In addition, the value to the buyer was increased since the show was innovative and the demand was high.
In conclusion, existing market boundaries do not produce uncontested market space and competition. Innovative variables and the formation of uncontested market space result in the emergence of accessible demand. The blue ocean strategy, which describes the competition as irrelevant, is employed by Cirque du Soleil. To thrive in the target market, the circus devised novel strategies, such as developing artistic components that enhanced output value.
Reference List
Bhargava, A. (2017) ‘Blue ocean strategy: a necessity prescription for companies,’ in Om R. P. and Anukrat S. (eds.) Maximizing business performance and efficiency through intelligent systems. Harrisburg: IGI Global, pp. 136-143.
Generalsasso (2006) Cirque du Soleil. Web.
Hamra, Y. and Gassabi, I. (2021) ‘Adopting blue ocean strategy to break the competition and create value innovation-case study of Sun Circus company’, Administrative and Financial Sciences Review, 5(2), pp. 440-454.
Harvard Business Review (2017) The explainer: blue ocean strategy. Web.