When pursuing a Blue Ocean strategy, a firm in a crowded marketplace attempts to out-compete rivals on both cost and product features with the goal of gaining market share at the expense of other competitors in the same industry.

Question

Business

Amira Ford

14 December, 01:31

When pursuing a Blue Ocean strategy, a firm in a crowded marketplace attempts to out-compete rivals on both cost and product features with the goal of gaining market share at the expense of other competitors in the same industry.

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Answers (1)

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Deven Mcclain · Answer 1

The correct answer is False.

Explanation:

The first thing they did was to differentiate two contexts: the red ocean that is marked by fierce competition without differentiation and where the cheapest triumphs based on stealing customers from competitors, offering the same, but cheaper (churn rate), or the blue ocean, where the right strategy and innovation generate value leaps that make competitors irrelevant because customers compare absolutely different products and services.

The four principles on which the blue ocean rests are:

Create new spaces for consumption. Focus on the global idea, not the numbers. Know beyond the existing demand. Ensure the viability of the strategy.