Unformatted text preview: ic unit of analysis for exploring and explaining
the creation of blue oceans. The strategic move is the unit of analysis upon which the logic, tools, and
methodologies of blue ocean strategy are derived. See Strategic Move. 19
© 2008 Kim & Mauborgne. All Rights Reserved. Blue Ocean Strategy Dictionary V Value-Cost Trade-off is the conventional belief that companies can either create greater value to
customers at a higher cost, or create reasonable value at a lower cost. Here strategy is seen as making a
choice between differentiation and low cost. In contrast, those who seek to create blue bceans pursue
differentiation and low cost simultaneously. This enables them to create a dramatic leap in value for buyers
and the company itself. See Value Innovation. Value Curve See Strategic Profile.
Value Innovation is the strategic logic underpinning blue ocean strategy. Value innovation is the
simultaneous pursuit of differentiation and low cost. Value innovation focuses on making the competition
irrelevant by creating a leap of value for buyers and for the company, thereby opening up new and
uncontested market space. Because value to buyers comes from the offering’s...
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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