Where to find our Blue Ocean Strategy ?

W. Chan Kim and Renee Mauborgne , One group of sholars and executives, argue that businesses should focus less on their competitors and more on alternatives; they also should focus less on their customers, and more on non-customers or potential new customers.

They attach Mr Porter head on, arguing that the “five forces” analysis is a formula for remaining in “red oceans”, where the sharks compete mercilessly for the action. The key to execeptional business success, they say, is to redefine the terms of competition and move into the “blue ocean”, where you have the water to yourself. The goal of these strategies is not to beat the competition, but to make the competition irrelevant.

The example they cite is Cirque du Soleil. The canadian company that redefined the dynamics of a declining circus industry in the 1980s. Under conventional startegy analysis, the circus industry was a loser. Star performers had “suppier power” over the company. Alternative forms of entertainment, from sporting events to home entertainment systems, were relatively inexpensive and on the rise. Moreover, animal rights groups were putting increased pressure on circuses for their treatment of animals.

Crique du Soleil eliminated the animals and reduced the importance of individual stars. It created a new form of entertainment that combined dance,music and athletic skill to appeal to an upscale adult audience that had abandoned the traditional circus.

Instead of “five forces “ , they talk about “four actions” that can help you creat a blue ocean strategy.

---Which of the factors that the industry takes for granted should be eliminated?

--- Which factors should be reduced well below the industry’s standard?

---Which factors should be raised well above the industry’s standard ?

---Which factors should be created that the industry has never offered ?

Even Though both feet on the ground is important, Having new theoretical guidance is also a must.