Question

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?

a. market penetration strategy
b. liquidation strategy
c. product diversification strategy
d. blue ocean strategy

Answer 1

The answer is: D) blue ocean strategy

Step-by-step explanation:

Blue Ocean strategy is about selling a good product or service at a low price in order to enter new markets or gain market share.

In this case, True Movies is selling a superior movie experience at the price of a low-cost movie theater. They are trying to take away customers from both Vibrant Movies and Global Cine.