Canvas
The Case of Cirque du Soleil
© INSEAD Blue Ocean Strategy Institute 2010
© INSEAD Blue Ocean Strategy Institute 2010
Types of Circuses
Small time circuses
Big time circus
(Ringling Brothers )
© INSEAD Blue Ocean Strategy Institute 2010
Ringling Brother’s Revenues
700 600 500 400 300 200 100 0 1995 1996 1997 1998 1999 2000 2001© INSEAD Blue Ocean Strategy Institute 2010
Is the Circus Industry Attractive?
Big league Barriers to Entry Substitutes Buyer Power Supplier Power Competitive Rivalry Overall Attractiveness Very High High High High High Low Small league Low Med High Low High Med
© INSEAD Blue Ocean Strategy Institute 2010
What does the Circus Industry Compete on?
hi
lo
Price Animal Shows Star PerformersAisle Concessions
offering level
Multiple Show Arenas Fun & Humor
Thrills & Danger Unique Venue © INSEAD Blue Ocean Strategy Institute 2010
What does the Circus Industry Compete on?
hi
Ringling Brothers
lo
Price Animal Shows Star Performers Aisle Concessions
offering level
Multiple Show Arenas Fun & Humor
Thrills & Danger Unique Venue© INSEAD Blue Ocean Strategy Institute 2010
What does the Circus Industry Compete on?
hi
Ringling Brothers
offering level
Smaller Regional Circus
lo
Price Animal Shows Star Performers Aisle Concessions
Multiple Show Arenas Fun & Humor
Thrills & Danger Unique Venue © INSEAD Blue Ocean Strategy Institute 2010
The Three Tiers of Noncustomers
First tier – “Soon to be”
‐On the edge of your market ready to jump ship
First Tier
© INSEAD Blue Ocean Strategy Institute 2010
The Three Tiers of Noncustomers
First tier – “Soon to be”
‐ On the edge of your market ready to jump ship Second Tier First Tier
Second tier – “Refusing”
‐Consciously choose against your market
© INSEAD Blue Ocean Strategy Institute 2010
The Three Tiers of Noncustomers
Third Tier Second Tier First TierFirst tier – “Soon to be”
‐ On the edge of your market ready to jump ship
Second tier – “Refusing”
‐Consciously choose against your market
Third tier – “Unexplored”
‐In a market distant from yours
© INSEAD Blue Ocean Strategy Institute 2010
Cirque du Soleil
© INSEAD Blue Ocean Strategy Institute 2010
Cirque du Soleil
© INSEAD Blue Ocean Strategy Institute 2010Cirque du Soleil Programs
© INSEAD Blue Ocean Strategy Institute 2010
Questions for Reflection
In comparison with a conventional circus as you know it 1. What factors have been eliminated?
© INSEAD Blue Ocean Strategy Institute 2010
Questions for Reflection
In comparison with a conventional circus as you know it 1. What factors have been eliminated? 2.What factors have been raised well above or reduced well below industry standards?
© INSEAD Blue Ocean Strategy Institute 2010
Questions for Reflection
In comparison with a conventional circus as you know it 1. What factors have been eliminated? 2. What factors have been raised well above or reduced well below industry standards? 3. What factors have been created? From which industry do these new factors come?© INSEAD Blue Ocean Strategy Institute 2010
Questions for Reflection
In comparison with a conventional circus as you know it 1. What factors have been eliminated? 2. What factors have been raised well above or reduced well below industry standards? 3. What factors have been created? From which industry do these new factors come? 4. How does Cirque du Soleil create profitable growth?© INSEAD Blue Ocean Strategy Institute 2010
Four Actions Framework
Reduce
Which factors should be reduced well below the industry’s standard?
Eliminate
Which factors that the industry takes for granted should be eliminated?
Create
A New Value Curve
Which factors should be created that the industry has never offered?
Raise
Which factors should be raised well above ...
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