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 to grow volume and drive their 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 proposes that companies can create a new market space and differentiate themselves by offering innovative products or services that provide unique value to customers. By doing so, they can avoid competing in an overcrowded market with intense price rivalry and instead create a blue ocean of uncontested market space with high growth potential.

The Basic Proposition of the Blue Ocean Strategy Is That