Blue Ocean Strategy

Blue Ocean Strategy, proposed by Professors Kim and Mauburn, focuses on creating new markets (Blue Oceans) rather than competing in existing ones (Red Oceans). This strategy emphasizes value innovation, which involves pursuing differentiation and low-cost strategies to generate new demand. The approach requires restructuring market boundaries and aligning business activities with new market objectives. Blue Ocean Strategy aims to provide a less competitive environment for growth compared to Red Oceans, where competition is fierce.

What is the primary focus of Blue Ocean Strategy?

• Competing in existing markets

• Creating new markets

• Reducing operational costs

• Improving existing products

How is a 'red ocean' described in the context of market competition?

• A market with high demand

• A market with no competitors

• A market with fierce competition

• A market with low innovation

What is essential for a company to create a blue ocean?

• Innovative value concepts

• Large workforce

• Strong brand presence

• High marketing budget

What does value innovation typically involve?

• Expanding into existing markets

• Pursuing differentiation or low-cost strategies

• Reducing product features

• Increasing product prices

Which of the following is a guiding principle of Blue Ocean Strategy?

• Focusing on existing market boundaries

• Creating demand in new markets

• Competing with established competitors

• Reducing product quality