Blue Ocean Strategy
What is a ? What is a red ocean strategy? Explain these from the perspective of
company, competition, costs, and markets.
The authors allude to the fact that most companies borrow their strategic thinking from military models
(see ‘Paradox of strategy’). How does this model affect perceptions related to competition and customers
and what are the implications for creating value for markets (and employees!)?
Using the ‘Snapshot of Blue Ocean Creation’ exhibit, list and explain the key success factors for the three
industries (auto, computer, movie theaters).
The authors claim ‘demand is created rather than fought over’ in blue oceans. What does this mean? Cite
examples from the article.
Explain the redefined relationship between ‘value’ and ‘low cost’ in Blue Ocean Strategies. What is the
traditional basis of ‘competitive advantage’ in red ocean strategies?