Demographic and Financial Structure

Muhammed Burak CENGİZ

20142501015

1. What are the main differences between Red Ocean and Blue Ocean strategies?
2. Watch the internet videos about traditional cirques and Cirque du Soleil, and define their differences. 

1. In red oceans, companies becomes a part of exist industries or companies competitors. They fight for the piece of the pie. On the other hand bue ocens, companies creates new industries or redesigns the existing ones according to their eyecatchy facilities and creates new value or indusrty style for their own benefit.

In the red oceans the aim is winning the competition while in blue oceans it is making the competition nonsensial.

In red oceans the companies tries to use exist demand for its own benefits. On the other hand in blue oceans companies tries to create and gain new demands with their differences from other cmpanies, new facilities or copelately new products.

In red oceans companies sets their prices according to their cost and the value of the product. To capture the demand they always tries to find out new ways to minimize their cost, so they can reduce their prices. Red oceans accepts the differantiation as a cost increasing facility. Unlikely them blue oceans targetting provide differantiation and low or fairly high prices at the same time. Bussiness knows that differantiation always increases the value of earned pie. So we can say because the blue oceans tries to create differantiation their pie becomes valuable naturally. With their that strategy also they gives attantion to balance between the differantation and low cost and making that two issue matched to the companies structure and strategy.

1. Cirque du Soleil redesigned and redescribed the cirque term and creates its blue ocean strategy. Firstly it chance its audience that classical cirwues demanded by. Their new focus audiences are look like theatre, opera and art lovers. On the new audiences desires they make their understanding about cirques more enthellectual instead entertaining. Cirque du soleil add a subject to their show to create an understanding and consciousness. With artistic dance and music they capture new audiences with new feelings.

 On the other hand, they redesign the environment and interior architecture of the classic cirque system. Unlikely classic cirques they make a lot of expenditure on them and created a new value.  The new designs are much more attractive and pleasurable. It beacame multifunctional for showmens usage and production.

Near by their new values, added to the cirque understanding, they also omit some values that are appeared in old understandings. They take out animal shows. They uderstood the environment and audiences feelings about animals, so that they fix these feelings in good way. Reather animal shows they add more human shows which ar a liitle bit less dangerous and scary.

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