Cirque Du Soleil Chapter Summary

A market universe can be considered to be composed of two oceans: Red and Blue. Red oceans represent the industries in existence today i.e. the known market place. Blue oceans denote all the industries not in existence today—the unknown market space, untainted by competition. In the red oceans, industry boundaries are defined and accepted and the competitive rules of the game are known. Companies try to outperform one another to grab a greater share of the existing demand. As the space gets more and more crowded, prospects for profits and growth are reduced. In such overcrowded industries, differentiating brand becomes much harder. Products turn into commodities, and increasing competition turns the water bloody. Blue oceans in contrast are defined by untapped market space and the opportunity for highly profitable growth.

This book provides its readers with practical frameworks and tools for identifying and capturing blue oceans. Companies which are caught in a red ocean, follow the conventional approach, racing to beat the competition by building a defensible position within the existing industry order. Whereas the creators of Blue Oceans don’t treat the competition as

Cirque du Soleil introduced an entirely new form of live entertainment based on the traditional circus. By redefining the purpose of every element of the old model, from the tent to the animals to the acrobatic acts, Cirque du Soleil essentially recreated its business and devised a new mode of entertainment. It sought to offer people the fun and thrill of the circus and the intellectual sophistication and artistic richness of the theater at the same time. By doing this, it cultivated an entirely new audience of adults who preferred live theater to circus. It reduced its cost structure and increased its ticket prices beyond those charged by traditional circuses to compete with Broadway Theater