In the multiplex industry, Vibrant Movies Inc. is an upscale multiplex that focuses on superior customer experience. The firm charges premium prices for its movie tickets and services. Global Cine Inc., in contrast, charges the lowest price in the industry with its no-frills approach. In between these two segments is True Movies Inc., which offers a customer experience comparable to that of Vibrant Movies at a price almost as low as that of Global Cine. What strategy is True Movies pursuing in this scenario?

Question

Quizplus · Accepted Answer

True Movies is pursuing the blue ocean strategy. A successful blue ocean strategy requires that trade-offs between differentiation and low cost are reconciled. A blue ocean strategy allows a firm to offer a differentiated product or service at low cost.

In the Multiplex Industry, Vibrant Movies Inc