Question

A blue-ocean strategy: A). is an offensive strike employed by a market leader that is directed at pilfering customers away from unsuspecting rivals to boost profitability.B). involves an unexpected (out-of- the-blue) preemptive strike to secure an advantageous position in a fast-growing market segment.C). works best when a company is the industry's low-cost leader.D). involves abandoning efforts to beat out competitors in existing markets and instead invent a new industry or new market segment that renders existing competitors largely irrelevant and allows a company to create and capture altogether new demand.E). involves the use of highly creative, never-used-before strategic moves to attack the competitive weaknesses of rivals.

Answer 1

Answer: The correct answer is D).

Explanation: A blue ocean strategy is used to gain a broad and durable competitive advantage by abandoning existing markets and inventing a new market segment in which competitors are minimal and allow the company to meet a new demand.