Cirque du Soleil: Innovate to Grow With New Blue Ocean Strategy - Essay Sample

Introduction

Innovation refers to the process through which entirely new or improved ideas are implemented to give better results. It also involves coming up with new methodologies and techniques to integrate what has been existing (Ciborra, 1996). Concerning innovation, the paper will discuss various development strategies in Cirque du Soleil Company. The application of the development strategy will also be addressed as per the New Blue Ocean situation (Kim & Mauborgne, 2014).

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In precise review, blue ocean situation involves reducing the competitive environment by adopting newly idea in production. The competition that exists between Red Ocean and Blue Ocean is therefore solved by changing the product or incorporating a product integration innovation. In conjunction with that, the operation model innovation should be brought in to assist in reforming production as well as efficiency (Kim & Mauborgne, 2014).

Cirque du Soleil has employed the Blue Ocean strategy whereby it prefers placing their displays and shows at different and unique venues. By so doing, they can protect their pricing mechanism hence retaining profit margins over its competitors. The exploration of entirely new places and product integration is a way to keep away from competitors, thus enjoying the monopoly of production over that duration (Kim & Mauborgne, 2014). The innovation strategy, therefore, had helped them gain a competitive advantage over time.

However, Cirque du Soleil has faced various threats from the competitive world. Its entertainment industry has diversified and spread almost to every part of the world. For a reason, the Cirque du Soleil is unable to reposition themselves in the unexplored area where they do not face competition. The weakness continues to persist, and the only way to terminate the problem is by employing another innovative plan. Some of these plans include integration in product representation as well as coming up with a new style to entertain their audiences (Ciborra, 1996). It would also be appropriate for Cirque du Soleil to employ business model strategy and design, that is, embracing technology and customer support care.

References

Kim, W. C., & Mauborgne, R. A. (2014). Blue ocean strategy, expanded edition: How to create uncontested market space and make the competition irrelevant. Harvard business review Press. https://books.google.co.ke/books?hl=en&lr=&id=gwypBQAAQBAJ&oi=fnd&pg=PR4&dq=Mini+Case:+13+Cirque+du+Soleil:+Searching+for+a+New+Blue+Ocean&ots=bO8hFS5b4o&sig=7zFNGkEBS2juAtkYC0lUZNG8X28&redir_esc=y#v=onepage&q&f=false

Ciborra, C. U. (1996). Teams, markets, and systems: business innovation and information technology. Cambridge university press. https://books.google.co.ke/books?hl=en&lr=&id=H5HbjK0851gC&oi=fnd&pg=PR8&dq=business+innovation&ots=tfnHlAcrcL&sig=41REyHs89gLLbzVoRsNJZjINC58&redir_esc=y#v=onepage&q=business%20innovation&f=false