BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -BLUE OCEAN STRATEGY is the simultaneous pursuit of differentiation and low cost to open up a new market space and create new demand. It is about creating and capturing uncontested market space, thereby making the competition irrelevant.

Detailed explanation-2: -Which of the following statements is true of the blue ocean strategy? It creates new demand in an uncontested market space.

Detailed explanation-3: -The term was coined by Chan Kim and Renee Mauborgne in the book Blue Ocean Strategy: How to Create Uncontested Market Space and Make the Competition Irrelevant. Blue ocean firms tend to be innovators of their time. Blue oceans are contrasted with “red oceans, ” characterized by cutthroat competition and crowded markets.

Detailed explanation-4: -Here there is a fixed existing demand of which every company wants a share. The Blue Ocean on the other hand is an uncontested market place that creates demand for itself, which is not known to others. This makes competition irrelevant. Focus is on creating, not competing.

Detailed explanation-5: -Special offers and product promotions We call it value innovation because instead of focusing on beating the competition, you focus on making the competition irrelevant by creating a leap in value for buyers and your company, thereby opening up new and uncontested market space.