Blue Ocean Strategy Flashcards, test questions and answers

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What is Blue Ocean Strategy?

The Blue Ocean Strategy is a business strategy that encourages companies to create new markets and value propositions rather than competing within existing industries. This strategy was developed by W. Chan Kim and Renee Mauborgne, co-directors of the INSEAD Blue Ocean Strategy Institute in France. The idea behind this approach is that businesses should seek out new opportunities instead of fighting for market share with their competitors in an already saturated industry. At its core, the Blue Ocean Strategy centers around creating uncontested market space or blue oceans where competition is absent or minimal. Companies can use this approach to develop entirely new products and services or find innovative ways to deliver existing ones that customers have not yet considered. This strategy eliminates the need for companies to compete on price as they can offer unique value propositions at higher prices without worrying about being undercut by rivals since no one else has thought of offering it before. One example of a successful implementation of the Blue Ocean Strategy was Apple’s introduction of the iPod in 2001. Instead of joining other digital music players on the market, such as Sony’s Walkman, Apple created its own version with features like an easy-to-use touch wheel interface, massive storage capacity and attractive design which set them apart from all other products available at that time and made them instantly desirable amongst consumers who had never seen anything like it before. In summary, The Blue ocean Strategy offers businesses an effective way to break away from traditional industry boundaries in order to open up untapped markets and create greater profits through innovation and differentiation instead of relying solely on price competition. By focusing on creating entirely new products or finding fresh ways to provide existing services that are not found elsewhere, organizations can set themselves apart from their competition while also delivering unique value propositions at higher prices than what others may be able to offer due to lack of competition.