BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -This is a key principle of blue ocean strategy which sees low cost and differentiation being pursued simultaneously. To reduce costs, Nintendo did away with the hard disk and DVD functionality found in most game consoles and reduced the processing quality and graphics.

Detailed explanation-2: -Instead, Nintendo used Blue Ocean Strategy to redefine market boundaries, creating the best-selling video-game console ever, the Nintendo Wii. Targeting noncustomers, the Wii outsold Sony’s PlayStation and Microsoft’s Xbox combined, until the market was disrupted by smartphones and tablets.

Detailed explanation-3: -SEQUENCE OF CREATING A BLUE OCEAN. Companies need to build their blue ocean strategy in the sequence of buyer utility, price, cost, and adoption. This allows them to build a viable business model and ensure that a company profits from the blue ocean it is creating.

Detailed explanation-4: -Cutthroat competition turns the ocean bloody red. Hence, the term ‘red’ oceans. Blue oceans denote all the industries not in existence today – the unknown market space, unexplored and untainted by competition. Like the ‘blue’ ocean, it is vast, deep and powerful – in terms of opportunity and profitable growth.