Question

A blue ocean strategy differs from a low-cost strategy in that A. the intent of a blue ocean strategy is not to be the absolute lowest-cost provider because a blue ocean must also increase perceived value. B. the focus of a blue ocean strategy is on lowering the economic value created, whereas a cost-leader focuses on increasing the economic value created. C. a blue ocean's research and development focus is on process technologies, and a cost-leader's focus is on product technologies. D. economies of scale are more important to a blue ocean strategy, while economies of scope are more important to a cost-leader.

Answer 1

A blue ocean strategy differs from a low-cost strategy in that "the intent of a blue ocean strategy is not to be the absolute lowest-cost provider because a blue ocean must also increase perceived value".

Option: A

Explanation:

Based on the notion that each business will make higher profits by developing new competition in the non-competitive market, a so-called blue ocean, thus known as "Blue Ocean Strategy". The technique emphasizes on the ability to produce a dominant market segment and exclude rivals from the competition. For an instance the Nintendo Wii released in 2006 and the idea of worth creativity is at its heart.

The true winner in a low cost approach is the business with the lowest actual cost in the commodity market. For instance, if two companies have made extremely similar goods that sell on the marketplace at almost the same price, the one with the reduced costs has the benefit of a higher profit per sale.