How can Blue-Ocean thinking result in cost savings for companies that practise it?
A) by diminishing quality to increase profit margins
B) by searching within the conventional boundaries of industry competition
C) by seeking head-to-head battles with competitors based largely on price
D) by eliminating and reducing the factors affecting traditional industry competition
E) by competing in occupied market positions with traditional value expectations

Question

Quizplus · Accepted Answer

Blue-Ocean thinking involves breaking away from traditional industry competition by creating new demand and eliminating or reducing factors that have made industry competition intense. By doing so, companies can achieve a cost advantage while offering unique value to customers. This is achieved through offering new products, services, or business models that are not currently offered by competitors, resulting in reduced cost and higher profit margins.

How Can Blue-Ocean Thinking Result in Cost Savings for Companies