Unformatted text preview: the Blue Ocean Idea index tests the following four criteria, in that order:
1. Does the new offering provide exceptional utility?
2. Is the price easily accessible to the mass of target buyers?
3. Does the cost structure meet the target cost?
4. Are adoption hurdles addressed up front?
If the answer is no at any step, it is important to return to the previous step until the answer is yes to
each question. Blue Oceans represent the unknown market space, i.e. all the industries not in existence today. Blue
oceans are defined by untapped market space, demand creation, and the opportunity for highly profitable
growth. In blue oceans, competition is irrelevant because the rules of the game are not set. Blue oceans can
be created beyond existing industry boundaries or by expanding existing industry boundaries. Blue Ocean
Strategy provides the systematic logic, tools and methodologies to create blue oceans. Blue Ocean Strategy (BOS) is the simultaneous pursuit of differentiation and low-cost to create new
market space. Blue Ocean Strategy se...
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This note was uploaded on 10/21/2012 for the course ECON 45 taught by Professor Mikel during the Spring '12 term at Art Institute of Atlanta.
- Spring '12