Question

How does a company create a new market with a blue ocean strategy, and can you provide an example? How can companies innovate by eliminating steps in the value chain, and can you provide an example?

Answer 1

A company can create a new market with a blue ocean strategy by offering a unique product or service. An example is Cirque du Soleil. Companies can innovate by eliminating steps in the value chain, like Apple did with iTunes.

Step-by-step explanation:

A company can create a new market with a blue ocean strategy by offering a unique product or service that has no direct competitors. This strategy focuses on finding uncontested market space where demand is untapped. An example of a company that created a new market with a blue ocean strategy is Cirque du Soleil. They revolutionized the circus industry by combining elements of theater and acrobatics, targeting a new customer base.

Companies can innovate by eliminating steps in the value chain through operational efficiency or by redefining the value they deliver to customers. For example, Apple transformed the music industry by introducing iTunes, eliminating the need for physical CDs and offering a convenient way to purchase and download music. They streamlined the value chain by connecting artists directly with consumers.