Problem
I. What is a blue ocean strategy? What is a red ocean strategy? Explain these from four perspectives: company, competition, costs, and markets.
II. The authors allude to the fact that most companies borrow their strategic thinking from military models (see 'Paradox of strategy'). (i) Briefly explain this. (ii) How does this model affect perceptions related to competition and customers? (iii) What are the implications for creating value for markets (and employees!)?
III. Using the 'Snapshot of blue ocean creation' exhibit in the article, list and explain the key success factors for the two industries identified in the article (automobiles, and movie theaters). (~2 paragraphs)
IV. The authors claim 'demand is created rather than fought over' in blue oceans. (i) What does this mean? (ii) Cite two examples from the article.
V. (i) Explain the redefined relationship between 'value' and 'low cost' in blue ocean strategies. (ii) What is the traditional basis of 'competitive advantage' in red ocean strategies?
VI. (i) Do you think Blue Ocean Strategy could work at your business? (ii) Why or why not? ... If you don't have a job, use a place you worked at in the past.