Blue Ocean Strategy – Four Actions: #1 Eliminate

We frequently receive requests from readers asking for hints on how one creates a compelling Blue Ocean Strategy. As a way of response, each day this week we will review one of the four critical actions of Blue Ocean Strategy, using the well-known and loved example—Cirque du Soleil. Combining these actions allows one to break out of competitive, shark-infested, Red Ocean marketspaces, and into vast Blue Oceans, just as Cirque du Soleil did.

Blue Ocean Strategy Action #1: Eliminate factors that the industry takes for granted but adds no perceived value to customers.

Cirque du Soleil eliminated star performers, animal shows, aisle concession sales and multiple show arenas. Star performers, while demanding premium compensation, were not really seen by circus-goers as true, Hollywood-like stars. Animals, while a key attraction, were the most costly element of a circus as well as increasingly controversial (animal rights). So even though eliminating stars and animals seems blasphemous to circus purists, in hindsight it made good business sense to a band of former street performers from Quebec, Canada, who had the audacity to challenge traditional wisdom.

Other typical circus offerings such as aisle concession sales and multiple show arenas, had been accepted as an industry standard as well, but while costly to the circus owners, added very little additional perceived value to the circus-goer. So what did Cirque do? It eliminated them as well.