Cirque du Soleil’s Success
Let’s check out what the experts say.
Kim and Mauborgne’s Value Curve
Each industry has a set of factors where companies compete.
By plotting how well companies perform in each factor, we can draw a value curve.
Companies can make the competition irrelevant by creating a cool new curve.
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To do this they should ask four key questions.
(1) Which factors should be eliminated?
(2) Which factors should be reduced below standards?
(3) Which factors should be raised above standards?
Clayton Christensen’s Disruptive Innovation
Disruptive innovations are important because they explain why strong, successful companies eventually fail.
These companies do a great job of meeting the desires of their main customers.
Initially, a disruptive innovation doesn’t satisfy the main customers at all, so the big companies ignore it.
In fact, disruptive innovations don’t start off by meeting anyone’s needs very well.
But then they start meeting everyone’s needs really well, and it’s too late for the big companies to catch up.
Is Cirque du Soleil a Disruptive Innovation?
They targeted adults where traditional circuses targeted children.
At first their product didn’t make any money.
They expanded the market to include new customers.
Traditional circus customers were oversatisfied.
Not a low-end innovater because they had high prices.
Cirque du Soleil has yet to seriously disrupt traditional circuses.