Which of the following statements about blue ocean strategy is true?Multiple choice question.Its success requires that the firm that implements the strategy be highly centralized.It is the easiest type of strategy to implement.It requires reconciling the trade-offs between differentiation and low cost.Its goal is to reduce costs by offering a standardized product to the mainstream customer.
Question
Which of the following statements about blue ocean strategy is true?Multiple choice question.Its success requires that the firm that implements the strategy be highly centralized.It is the easiest type of strategy to implement.It requires reconciling the trade-offs between differentiation and low cost.Its goal is to reduce costs by offering a standardized product to the mainstream customer.
Solution
The correct answer is: "It requires reconciling the trade-offs between differentiation and low cost."
Blue Ocean Strategy is about creating and capturing uncontested market space, thereby making the competition irrelevant. It suggests that an organization should create new demand in an uncontested market space, or a "Blue Ocean", rather than compete head-to-head with other suppliers in an existing industry. This strategy requires a balance between differentiation (offering unique features) and low cost (being cost competitive). It does not necessarily require the firm to be highly centralized, nor is it the easiest strategy to implement. Also, its goal is not to reduce costs by offering a standardized product to the mainstream customer, but to create a unique market space.
Similar Questions
The strategy of Blue Ocean's are …...Select one:a.Not purely technical in natureb.Frequently from existing competitorsc.Not based only on company and industryd.All of the above
Which of these would be a characteristic to implement the blue ocean strategy?Select one:a.No market yet existsb.No competitorsc.Compete on novelty ideasd.All of the above
…...................is a theory which is mostly marketing-related that focuses on entering industries or markets that have little to no competition.Select one:a.Green Ocean Strategyb.Blue Ocean Strategyc.Red Ocean Strategyd.None of these
Which of the following is not connected with Blue Ocean strategy? *Value InnovationERRCGE 9 Box ModelStrategy Canvas
Transforms any type of innovation that historically was expensive and complicated into an innovation that is affordable, simple, and available to broader markets.Group of answer choicesRed Ocean StrategiesInnovation DiffusionDisruptive InnovationBlue Ocean Strategies
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.