Question

To initiate a strategic move that allows a firm to open up new and uncontested market space through value innovation, managers must address four key questions when formulating a blue ocean business strategy. These questions focus on ___________

Answer 1

A blue ocean strategy successfully combines differentiation and cost-leadership activities using value innovation. It focuses on creating additional demand and grabbing market opportunities.

The four key questions are:

1. Eliminate: what factors that this company takes for granted can and should be eliminated to foster value innovation.?
2. Reduce: what industry factors can be reduced?
3. Raise: what industry factors should be increased?
4. Create: which factors should we created that have never been offered by our competitors?