Cornish Steve
5th September 2005, 03:20
Has anyone read the book Blue Ocean Strategy by Kim & Mauborgne? The authors believe that companies can become successful by creating blue oceans of uncontested market space, what they term value innovation. In other words, companies can deliver value (lower prices) and innovation (a better product) at the same time.
I know. We've all read messages from companies that claim to offer "high quality service at the lowest prices". In the standard business model, companies must pursue one or the other, not both. A blue ocean strategy, on the other hand, really does deliver both. The book quotes several valid examples.
One example is Cirque du Soleil. The traditional circus is expensive to run. High cost items include exotic animals and high-profile circus stars. Cirque du Soleil have cut their costs by abolishing both (and addressing animal rights concerns at the same time). The traditional circus is predictable. Cirque du Soleil offer a cross between circus and theatre, a show with a theme or story line and original music. They offer multiple productions, which encourage visitors to attend more than one show.
So, Cirque du Soleil offer a better product at a lower cost. It really can be done!
Bringing this back to home, my company is pursuing a blue ocean strategy. We have cut our costs dramatically by making professional courses available over the Internet. We deliver innovation by offering classes that are highly interactive, include participants from around the world, and treat everyone in the class as special. This is my marketing pitch, at least. :) You'll have to ask someone who's taken one of our courses to vouch for the truth of this claim.
What do others think? Has anyone read Blue Ocean Strategy? Is the subtitle of the book reasonable: "How to Create Uncontested Market Space and Make the Competition Irrelevant"? Personally, I think it's a great book that makes a credible case for innovation.
I know. We've all read messages from companies that claim to offer "high quality service at the lowest prices". In the standard business model, companies must pursue one or the other, not both. A blue ocean strategy, on the other hand, really does deliver both. The book quotes several valid examples.
One example is Cirque du Soleil. The traditional circus is expensive to run. High cost items include exotic animals and high-profile circus stars. Cirque du Soleil have cut their costs by abolishing both (and addressing animal rights concerns at the same time). The traditional circus is predictable. Cirque du Soleil offer a cross between circus and theatre, a show with a theme or story line and original music. They offer multiple productions, which encourage visitors to attend more than one show.
So, Cirque du Soleil offer a better product at a lower cost. It really can be done!
Bringing this back to home, my company is pursuing a blue ocean strategy. We have cut our costs dramatically by making professional courses available over the Internet. We deliver innovation by offering classes that are highly interactive, include participants from around the world, and treat everyone in the class as special. This is my marketing pitch, at least. :) You'll have to ask someone who's taken one of our courses to vouch for the truth of this claim.
What do others think? Has anyone read Blue Ocean Strategy? Is the subtitle of the book reasonable: "How to Create Uncontested Market Space and Make the Competition Irrelevant"? Personally, I think it's a great book that makes a credible case for innovation.