Friday, November 27, 2015
Strategy is Blue Innovation
While reading the Blue Strategy Innovation I could not help but to stop and think about the needs or events that lead the creators of Cirque du Soleil to invent a new industry that redefined circus entertainment.
Though the article does not explain how is new "circus" was created , it helpful to know that when you assess the needs of a current industry you should not confine your thoughts to that industry alone. Case in point, Cirque du Soleil is not limited to just the circus industry, instead it can be seen as a cross over of both the circus and theater industry, thus creating its own market . I remember the first Cirque du Soleil show I ever attended, it was more than just a regular family outing, it was an event. The audience dressed a bit more "upscale" that they would at the circus and the reactions of the audience members was more involved, complete with "ohs and ahs". It was from this experience that I have always considered Cirque du Soleil as its own separate category of entertainment. My experience coupled with the other attendees have added to the blue strategy argument that the competition should not be used a benchmark.
In a similar blue strategy dynamic, Uber has developed a new market that years ago would not be in existence. Using the two logic pillars behind the blue ocean strategy, Uber has refined the "taxi" service industry.
In understanding the first logic, "it's not about technology innovation" Uber understood that the technology to communicate with a "service" was already in existence, however they also knew that the needs of the customers lied in the accessibility of a car service without the third party player (taxi company). With a service that considers the customer's experience as one of its most important elements, Uber has made the "feedback" feature a new structure that was not a part of existing taxi companies. As a rider you are able to "rate" your driver as to provide feedback for future drivers.
The second and last logic that Uber has fully grasped in creating their own blue ocean is that " you don't have to venture into distant waters to create blue oceans." Within the highly competitive taxi company market, Uber was able to assess the needs of this industry without trying to create a new one. Uber was able to see that the main need of the industry was not the availability of the taxi companies but the intimacy of the experience of the customer.
All in all Uber has refined what the taxi services can do and has created new ways of thinking as it relates to customer experiences, thus this has cause the competitors to "caught up" to Uber, who is consistently reinventing and pushing the limits of the industry. With the creation of a global presence and effecting changes in legislature, Uber is beginning to expand beyond the normal " taxi" industry thus setting themselves apart just like Cirque du Soleil.
Below are some articles that showcases the changes Uber has affected:
Uber and the city of St. Louis ride sharing Negotiations
Amber Alert System in Uber Cars