Strategic Management - Blue Ocean & Red Ocean (Chap 8)

The Blue Ocean Strategy was suggested by:

• Henry Fayol

• Peter Drucker

• Renee Mauborgne

• Abraham Maslow

Which of the following is a trait of blue ocean strategy?

• Beat the competition

• Create and capture new demand

• Exploit existing demand

• Compete in existing market space

The following are the four basic strategies for Blue Ocean Strategies (BOS) EXCEPT:

• Maintain

• Create

• Raise

• Reduce

BOS is the simultaneous pursuit of ____________________.

• differentiation and focus

• diversification and cost leadership

• integration and concentration

• differentiation and low cost

The aim of BOS is to create new market space thereby making the competition irrelevant.

• TRUE

• FALSE

One of the basic strategies for BOS is "Raise". What do companies need to "raise"?

• Factors that are of low values to consumers.

• Existing factors that are valued by customers.

• New factors that are of high value to customers.

• Factors that are low value but customers still want them.

Give 2 examples of the traits/criteria of Red Ocean Strategy.

Give 3 examples of the traits/criteria of Blue Ocean Strategy (BOS)

State the four basic strategies under BOS.

One of the basic BOS strategies is "Create". What do companies need to "create"?