Cirque du Soleil is a classic example of how the circus format, which has been around for hundreds of years, can be turned into a blue ocean by adding new resources and capabilities. It is noteworthy that in just 20 years Cirque achieved the level of revenues that took Ringling Bros. and Barnum & Bailey, the once global champion of the circus industry, more than one hundred years to attain. Even more remarkable, this change occurred against a backdrop of waning interest in circuses because children preferred video games; protests by animal rights groups against the use of animals in circuses; and the rise of alternative forms of entertainment ranging from various types of live urban entertainment, to sporting events, to home entertainment.
The growing backlash against tobacco consumption and the shift in public sentiment towards cannabis is a potential catalyst for a new blue ocean for tobacco companies. Currently twenty six states and the District of Columbia have laws legalizing marijuana in some form. Agree or disagree with recreational cannabis, it is here to stay.
Initial Posting Instructions: You've been asked by Phillip Morris, cigarette company, to assess the likelihood of moving into the recreational cannabis blue ocean. What recommendations would you make to achieve this? Please make sure you support your recommendations with research.