Blue Ocean Strategy
strategy where it includes all industries not in existence, unknown market space
going where the profits and growth is, not where the competition is
Red Ocean Strategy
all industries in existence, the known mkt space
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Blue Ocean Strategy - ANSWER- strategy where it includes all industries not in
existence, unknown market space
going where the profits and growth is, not where the competition is
Red Ocean Strategy - ANSWER- all industries in existence, the known mkt space
industries never stand... - ANSWER- still
strategic move - ANSWER- the set of managerial actions and decisions involved
in making a major market-creating business offering
with technology & globalization, it has led to what? - ANSWER- accelerated
commodization
where brands become more similar, ppl buy more on price
The iPod was so successful because it was a - ANSWER- fully-integrated product
What does it mean...blue ocean? - ANSWER- creating a new group of consumers
most are created from within red oceans
what is the key to success? - ANSWER- market opportunity
Value innovation - ANSWER- low costs
high buyer value
red vs blue ocean strategy - ANSWER- Red:
compete in existing mkt space, beat competition, exploit existing demand, focus
on value-cost trade-off, make decision to differentiate through strategic choice
and low costs
, Blue:
create new mkt space, competition= irrelevant, creating new demand, focus on
differentiation & low costs, reconstructionist view
the winning strategic approach involves - ANSWER- value innovation
you break the value-cost trade off by - ANSWER- enhancing a limited set of key
factors and reducing or eliminating all other traditional
ex: microsoft office vs open office
strategic plan - ANSWER- comprehensive plan that identifies the critical direction
and guides the allocation of resources
strategic management - ANSWER- 1) analyze and learn from stakeholders
2) establish strategic direction
3) create strategy
4) execute it
(all in effort to please stakeholders)
the task environment includes... - ANSWER- the closest stakeholders
1. customers
2. suppliers.
3. competitors
global strategic management - ANSWER- most successful firms look global for
opportuntiies to grow and develop
saturated domestic mkt> potential foreign mkt
a mission statement - ANSWER- reflects what an org is
used for decision making and resource allocations
a vision statement is - ANSWER- a forward looking view of what the company will
look like
Michael Porter's Five Forces Model - ANSWER- Buyer power
Supplier power
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