Lesson Aim
Students watch a video about Blue Ocean Strategy and Cirque du Soleil, then practise language for market creation, competition, differentiation, value innovation and strategic positioning.
Before watching
- What makes a market highly competitive?
- Can a company succeed by avoiding direct competition?
- What industries have created completely new customer demand?
Prep Part 1
Drag the correct sentence ending into each gap.
Sentence endings
do better than competitorsit does better than its competitors.situation becoming worse over a long periodmany companies are competing for the same customers.established companies already in a marketWatch Part 1
Watch from 0:03 to about 0:48. Focus on Cirque du Soleil, red oceans, competition and existing demand.
Open Part 1 on YouTubeComprehension 1
Click each question to reveal the answer.
Vocabulary from Part 1
Cirque brought in revenues that incumbents had taken a century to .
The circus business was in long-term .
Companies in red oceans try to outperform their .
Fierce competition turns the water .
Options
bloodyattainfurniturerivalsdeclinePrep Part 2
Drag the correct sentence ending into each gap.
Sentence endings
reating more value while also controlling or reducing costhigher prices paid for a special experienceit increases value while controlling or reducing costs.it attracts customers instead of fighting over existing ones.strategy that creates new demand or new market spaceWatch Part 2
Watch from about 0:48 to the end. Focus on how blue oceans are created, how Cirque changed the circus model and how value innovation works.
Open Part 2 on YouTubeComprehension 2
Click each question to reveal the answer.
Vocabulary from Part 2
Blue oceans create demand rather than fight it.
Cirque blurred the line between circus and .
It attracted adults prepared to pay premium ticket .
It created a new and profitable market .
Options
overtheatrelayoutpricesspaceVocabulary Review
| Expression | Meaning | Example |
|---|---|---|
| red ocean | an existing market full of competition | Traditional circuses competed in a red ocean. |
| blue ocean | a new market space where demand is created | Cirque created a blue ocean. |
| existing demand | customers already being fought over by competitors | Red ocean strategy competes for existing demand. |
| value innovation | increasing value while also controlling cost | Cirque pursued value innovation. |
| market space | a strategic area where a company can sell and grow | Cirque created new market space. |
Phrasal Verbs and Expressions
Cirque was bringing high revenues.
Companies try to grab a bigger share demand.
Demand is created rather than fought .
Cirque blurred the line circus and theatre.
Companies should chart a course traditional boundaries.
Options
betweenpastoftogetheroverinCollocations
fierce
existing
unknown
premium ticket
value
Options
marketspricesmeatballscompetitioninnovationdemandB2/C1 Grammar: Relative Clauses for Business Strategy
This section practises relative clauses for defining markets, describing companies and explaining strategic choices.
Grammar Section 1: Defining Relative Clauses
Choose an answer to get instant green/red feedback.
1. Complete: “Red oceans are markets ___ companies compete for existing demand.”
2. Which sentence is best?
Grammar Section 2: Relative Clauses in Context
Blue oceans are markets demand is created.
Cirque is a company changed the boundaries of the circus industry.
Customers wanted a more artistic experience paid premium prices.
Value innovation is a strategy pursues differentiation and low cost.
Options
whichwhosewherethatwhoGrammar Section 3: Speaking Task
| Relative pronoun | Business use | Example |
|---|---|---|
| who | People/customers | Customers who want theatre may pay more. |
| which/that | Strategies/companies/things | A strategy that creates demand can avoid direct competition. |
| where | Markets/places/situations | A blue ocean is a market where demand is created. |
| whose | Possession/connection | A company whose model is hard to copy can protect its advantage. |
Thought-Provoking Questions
1. Is it better to compete in an existing market or create a new one?
2. Can every company create a blue ocean?
3. Why are blue ocean strategies hard for rivals to copy?
4. What risks come with changing industry boundaries?
5. What other companies have created new market space?
6. Is low cost always compatible with differentiation?
7. How could a small business apply Blue Ocean Strategy?
Role Play
| Red ocean language | Blue ocean language | Strategy language |
|---|---|---|
| The market is crowded. Margins are under pressure. Rivals are copying us. | We need to create new demand. Let’s redefine the market. We can attract non-customers. | We should eliminate... We could raise... We need to reduce... We can create... |
Context
Student A
You are a strategy consultant. Explain how the company can create a blue ocean by changing industry boundaries.
Student B
You are the CEO. Ask about risks, costs, customer demand and how competitors might respond.
Role play task: Agree on one element to eliminate, one to reduce, one to raise and one to create.
Thank You
You have completed the ESL CONNECT video lesson.