GROUP MEMBERS:

AMEER HAMZA
MUAAVIA BIN NAVEED
TAYYAB QADEER
 BLUE OCEAN STRATEGY

Blue ocean strategy is the simultaneous pursuit of differentiation and low cost to open up a new market space and create new demand. It is
about creating and capturing uncontested market space, thereby making the competition irrelevant. It is based on the view that market
boundaries and industry structure are not a given and can be reconstructed by the actions and beliefs of industry players.
 Example: Cirque du Soleil
Founded in 1984 by street performers Stages productions seen by 40 million people in 90 cities around the world Cirque du Soleil has achieved in 20 years’ time
what Ringling Bros. And Barnum & Bailey — the world's leading circus — more than 100 years to attain.

Strategy:
Revealing Tagline : "We Reinvent the Circus" s, CdS did not make money by competing within the confines of an existing industry or by stealing customers from
Ringling and others.
They targeted a whole new group of customers who were traditionally noncustomers of the industry– adults and corporate clients who had turned to theater, opera, or
ballet.
Features of blue ocean strategy:
The distinctive characteristics of a blue ocean are opposite to
those of red oceans:
>New unknown market
>There is no competition as there are no competitors
>You can simultaneously use differentiation and low price
strategies
>Seeking for potential customers
>Demand development is required
>Defining the (yet) non-existent needs
>Giving innovation a sense of purpose
The Paradox of Strategy:
In a study of 108 companies 86% of new ventures
were line extensions or incremental improvements to
existing industries and ONLY 14% were aimed at
creating new markets or strategies.
Line extensions provided 62% of total revenues but
ONLY 39% of TOTAL PROFITS
In contrast, on the 14% invested in creating new
markets it delivered 38% of the total revenues BUT it
delivered 61% of TOTAL PROFITS!!!