Blue Oceans in the Real World

Blue Ocean or Entrepreneurship in general...

Cirque du Soleil: Reinventing the Circus

The Struggle: In the 1980s, the traditional circus industry was dying. Costs were rising, animal rights concerns were growing, and alternative forms of entertainment were stealing audiences.

The Blue Ocean Strategy: Cirque du Soleil completely reimagined what a circus could be. They: - Eliminated animals and star performers - Reduced arena size for a more intimate experience - Added artistic elements from theater and dance - Created themed storylines - Targeted adults and corporate clients instead of children

The Result: Cirque du Soleil created a new market space that combined the thrill of the circus with the sophistication of theater. They've since become a global entertainment phenomenon, with revenues that surpassed those of century-old circus companies in less than 20 years.

Netflix: From DVD Rentals to Streaming Domination

The Struggle: As a DVD-by-mail rental service, Netflix was facing stiff competition from established players like Blockbuster.

The Blue Ocean Strategy: Netflix: - Introduced a subscription model with no late fees - Invested heavily in data analytics to improve recommendations - Pivoted to streaming, creating a new market space - Began producing original content, competing with traditional studios

The Result: Netflix transformed from a struggling DVD rental business to a global streaming giant and major content producer. They didn't just beat Blockbuster; they made the entire video rental industry obsolete.

Airbnb: Transforming Travel Accommodation

The Struggle: Starting as a simple idea to rent out air mattresses, Airbnb faced an uphill battle against established hotel chains and safety concerns.

The Blue Ocean Strategy: Airbnb: - Created a platform connecting travelers with local hosts - Offered unique, personal experiences beyond traditional hotel stays - Implemented a review system to build trust - Expanded into experiences, not just accommodations

The Result: Airbnb disrupted the entire hospitality industry, becoming a $100+ billion company and changing how millions travel.

Dollar Shave Club: Disrupting the Razor Market

The Struggle: The razor market was dominated by a few big players with expensive products and complex marketing.

The Blue Ocean Strategy: Dollar Shave Club: - Offered a subscription model for affordable razors - Used humor and straightforward messaging in their marketing - Simplified the product line - Focused on direct-to-consumer sales

The Result: From a startup to a billion-dollar acquisition by Unilever in just five years, Dollar Shave Club carved out a significant market share in a previously entrenched industry.

Schimpf Group Family Business

The Struggle: Brainstorming business opportunities and available leverage.

The Blue Ocean Strategy: Natural Gas and the Texas pipeline. Patents (IP).

The Result: Steady growth, largely limited by politics of the bigger players. Required pivoting and further innovation (IP).