Leadership · Scale-up

Blue Ocean Strategy Canvas

The Strategy Canvas, from W. Chan Kim and Renée Mauborgne's 'Blue Ocean Strategy,' is a diagnostic and action framework. It captures the current competitive landscape by plotting how incumbents invest across key competing factors, then challenges you to create a divergent value curve by applying the Four Actions Framework: Eliminate, Reduce, Raise, Create. Instead of competing head-to-head (red ocean), you create new market space (blue ocean) where competition is irrelevant.

When to use this framework

→You're in a crowded market and competing on the same factors as everyone else
→You need to differentiate but 'being better' at the same things isn't working
→You want to make competitors irrelevant rather than beat them
→You're launching a new product and want to define the category differently
→Leadership needs a visual tool to communicate strategic differentiation

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Worked Example

Cirque du Soleil

1. Competing Factors

Identify the 6-8 factors that the industry currently competes on. These are the things customers evaluate when choosing a product.

Factor 1

Name a key factor the industry competes on (e.g., price, features, speed, design, service).

Star performers / animal acts

Factor 1 — Industry Average (1-10)

How much does the typical competitor invest in this factor?

Factor 1 — Your Brand (1-10)

How much do you invest in this factor?

Factor 2

Name another competing factor.

Aisle concession sales (merchandise, food)

Factor 2 — Industry Average

Industry average investment.

Factor 2 — Your Brand

Your investment level.

Factor 3

Name another competing factor.

Multiple show arenas (3-ring format)

Factor 3 — Industry Average

Industry average investment.

Factor 3 — Your Brand

Your investment level.

Factor 4

Name another competing factor.

Artistic music and dance

Factor 4 — Industry Average

Industry average investment.

Factor 4 — Your Brand

Your investment level.

2. Four Actions Framework (ERRC Grid)

Apply the four actions to create a divergent value curve. This is where the strategic creativity happens.

ELIMINATE — Which factors should you eliminate entirely?

What factors does the industry take for granted that you should drop completely? These cost money but don't create real value for your target customer.

1. Animal acts (expensive, controversial, and not essential to the entertainment experience) 2. Star performers (eliminated dependence on individual star power — the show is the star, not the performer) 3. Multiple show arenas (three rings at once means no one can focus — eliminated in favour of one stage) 4. Aisle concession sales (cheap merchandise and popcorn — eliminated the 'county fair' feel)

REDUCE — Which factors should you reduce well below the industry standard?

What factors are over-designed or over-delivered relative to what your target actually needs? Where can you save cost by offering less?

1. Fun and humour (reduced slapstick in favour of sophisticated wit and artistic expression) 2. Thrill and danger (reduced physical danger stunts in favour of artistic acrobatics) 3. Venue size (smaller, more intimate venues compared to traditional big-top circuses)

RAISE — Which factors should you raise well above the industry standard?

What factors should be lifted above the industry norm? Where are customers making compromises that you can resolve?

1. Unique venue/production design (raised to theatrical quality — every show has a bespoke stage, lighting, and set design) 2. Artistic music and dance (raised from background noise to central performance element — original scores, live music) 3. Ticket price (raised to theatre/Broadway level — $100-300+ vs. $20-50 for traditional circus)

CREATE — Which factors should you create that the industry has never offered?

What entirely new sources of value can you introduce? What do non-customers need that the industry doesn't offer?

1. Theme / storyline (traditional circuses have no narrative — Cirque created story-driven shows with characters, plot arcs, and emotional journeys) 2. Refined viewing environment (upscale venue with comfortable seating, bar service, artistic lobby — closer to theatre than tent) 3. Multiple productions (instead of one touring show, created a portfolio of distinct shows — each with unique theme, music, and choreography) 4. Corporate entertainment market (created a new customer: corporate event planners who book Cirque for conferences and private events)

3. Blue Ocean Viability Test

Divergence

Is your value curve meaningfully different from the industry? If you overlay the curves, they should NOT look similar.

Dramatically different. Where traditional circuses invest heavily in star performers, animals, and multi-ring spectacle, Cirque invests almost nothing in those areas. Where traditional circuses barely invest in artistic production, music, or narrative, Cirque goes to 10. The curves are almost mirror images.

Focus

Does your strategy focus on a few key factors rather than trying to compete on everything?

Laser focus on three factors: artistic production quality, thematic storytelling, and refined viewing environment. Everything else is deliberately deprioritised. Cirque doesn't try to be a 'better circus' — it's a fundamentally different entertainment form.

Compelling Tagline

Can you express your strategy in a clear, compelling tagline? If not, the strategy isn't focused enough.

We reinvent the circus. Theatre meets acrobatics — no animals, no stars, just art.

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