The basic proposition of the blue ocean strategy is that many successful companies have built their competitive advantage by initiating price wars and driving weaker rivals out of the industry.

Question

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The basic proposition of the blue ocean strategy is to create a new market space or a "blue ocean" rather than competing in an existing market space or a "red ocean" where there is already intense competition. The strategy aims to differentiate the offering from that of existing competitors and create uncontested market space with the potential for high profitability. It focuses on creating new demand instead of competing for existing demand. Therefore, the statement that the strategy is about initiating price wars and driving weaker rivals out of the industry is false.

The Basic Proposition of the Blue Ocean Strategy Is That