mrkt5500 strategic marketing
First watch the video:
Blue Ocean Strategy: Making the Competition Irrelevant
After you read the article Blue Ocean Strategy
and watch the video on Blue Ocean Strategy, answer the questions .
- What is a Blue Ocean Strategy? What is a red ocean strategy? Explain these from the perspective of company, competition, costs, and markets.
- The authors allude to the fact that most companies borrow their strategic thinking from military models (see ‘Paradox of strategy’). How does this model affect perceptions related to competition and customers and what are the implications for creating value for markets (and employees!)?
- Using the ‘Snapshot of Blue Ocean Creation’ exhibit, list and explain the key success factors for the three industries (auto, computer, movie theaters).
- The authors claim ‘demand is created rather than fought over’ in blue oceans. What does this mean? Cite examples from the article.
- Explain the redefined relationship between ‘value’ and ‘low cost’ in Blue Ocean Strategies. What is the traditional basis of ‘competitive advantage’ in red ocean strategies?
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