Quiz 11
Which of the following best explains why a blue ocean strategy is difficult to implement?
It requires the reconciliation of fundamentally different strategic positions—differentiation and low cost.
A key concern for a firm pursuing a blue ocean strategy should be to
offer a differentiated product or service at a low cost.
In a successful _____ strategy, the trade-offs between differentiation and low cost are reconciled.
blue ocean
What does blue ocean strategy attempt to reconcile?
the conflicting requirements of two generic strategies
A value curve indicates a lack of effectiveness in a firm's strategic profile when it
zigzags.
Which of the following describes an airline that is most likely stuck in the middle?
Just Right Airline offers high-quality beverages and meals, plush airport lounges, only a few connections via hubs domestically, poor customer service, and low prices.
A successfully implemented blue ocean strategy allows a firm to
charge a higher price than the cost-leader in the industry.
DFS Electronics Inc. ensures that all its products are highly durable and reliable by using techniques like zero-defect and lean manufacturing systems. These efforts not only add to the products' differential appeal, but also help the company save costs during production and avoid expenses due to after-sales services. Thus, the common value and cost driver responsible for DFS Electronics' strategic position as an integrator is (the)
quality
PureRinse Inc. is a brand reputed for its wide variants of body wash that introduced its range of shampoos and skin moisturizers a few years ago. Since most of its products could be produced using the same resources and technology, the company's cost structure decreased, while its product portfolio widened. In this scenario, which of the following value and cost drivers is PureRinse applying?
economies of scope
A blue ocean strategy tends to be successful only if a firm is able to rely on a _____ that allows it to reconcile trade-offs.
value innovation