Question

If you were in charge of a new startup airline and looking to implement a Blue Ocean strategy, which of the following would be least consistent with the principles of Blue Ocean? a. Creating an affordable high-speed shuttle service between Boston, NYC, and Washington DC for commuters who usually ride Amtrak trains. b. Offering bonus frequent flyer miles for travelers willing to fly late at night or make multiple connections in route to their destinations.

c. Finding a way to broker a relationship with an energy company to get lower fuel costs.
d. Adding virtual reality headsets for passengers to use to learn about places they are traveling to.

Answer 1

The least consistent option with a Blue Ocean strategy is (Option b) offering bonus frequent flyer miles, as it does not create a new market but instead places the airline in direct competition with existing players.

Step-by-step explanation:

If you were in charge of a new startup airline looking to implement a Blue Ocean strategy, the option that would be least consistent with this approach is b. Offering bonus frequent flyer miles for travelers willing to fly late at night or make multiple connections in route to their destinations. This is because a Blue Ocean strategy focuses on creating a new market space and making the competition irrelevant, rather than engaging in direct competition with existing players in the market. Creating an affordable high-speed shuttle service or adding virtual reality headsets provides a differentiated experience that creates a new market. In contrast, frequent flyer programs are a common offering by existing airlines and would place the startup in direct competition with them. Furthermore, brokering a deal for lower fuel costs is more of an operational efficiency measure than a Blue Ocean strategic initiative.