The basic proposition of the blue ocean strategy is that many successful companies have built their competitive advantage by:
A) redefining their product offering through value innovation and creating a new market space.
B) initiating a price war in order to grow volume and drive its weaker rivals out of the industry.
C) developing brand loyalty to protect them from intense price rivalry within their industry.
D) charging premium prices for their goods or services.
E) adopting lean production and flexible manufacturing technologies.

Question

Quizplus · Accepted Answer

The blue ocean strategy is based on redefining a company's product or service offering through value innovation to create a new market space. This involves creating demand and making competition irrelevant by offering a unique value proposition that sets the company apart from its competitors. The focus is not on price warfare or brand loyalty, but rather on differentiation and creating a new market. Lean production and flexible manufacturing technologies may be useful in implementing the strategy, but they are not the core focus.

The Basic Proposition of the Blue Ocean Strategy Is That