Question

A blue ocean strategy involves creating a new, untapped market rather than competing with rivals in an existing market. Which of the following is NOT a good example of this? At a time when cars were only for the wealthy, Henry Ford envisioned cars that were affordable to the typical American. Ford priced his vehicles so that his assembly line workers could afford them. Coffee shops were once the domain of old men, insomniacs, and chain-smoking urban hipsters. By reinventing coffee shops, Starbucks made the $4 latte a must-have item for college students, businesspeople, and soccer moms. GoPro came out with an extension of their product line of action cameras, called HERO, to be a subscription to editing software for their camera. The interactive features of Nintendo's Wii transformed playing video games from a hobby for the hardcore gamers into a treasured family event. Which of the following is NOT a type of innovation?

a. Early Innovation
b. Disruptive Innovation
c. Architectural Innovation
d. Radical Innovation
e. Incremental Innovation

Answer 1

The blue ocean strategy involves creating a new, untapped market rather than competing with rivals in an existing market. Examples include Henry Ford making cars affordable, Starbucks transforming coffee shops, and Nintendo's Wii expanding the market for video games. GoPro's subscription to editing software is NOT an example of a blue ocean strategy.

Step-by-step explanation:

The blue ocean strategy involves creating a new, untapped market rather than competing with rivals in an existing market. Examples of blue ocean strategies include:

1. Henry Ford's vision of making cars affordable to the typical American by pricing his vehicles so that his assembly line workers could afford them. This created a new market for cars and disrupted the existing market.
2. Starbucks reinvented coffee shops, making the $4 latte a must-have item for college students, businesspeople, and soccer moms. This expanded the market for coffee shops beyond their traditional customer base.
3. Nintendo's Wii transformed playing video games from a hobby for hardcore gamers into a treasured family event by introducing interactive features. This created a new market for video games.

The example that is NOT a good example of a blue ocean strategy is GoPro's extension of their product line with the subscription to editing software for their camera. This is an example of incremental innovation rather than creating a new, untapped market.