This practice often results in increasingly small

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Unformatted text preview: e conventional practice of aiming for finer segmentation to better meet existing customer preferences. This practice often results in increasingly small target markets. Instead, this principle shows how to aggregate demand, not by focusing on the differences that separate customers but by building on the powerful commonalities across noncustomers to maximize the size of the blue ocean being created and new demand being unlocked, hence minimizing scale risk. 4. Get the strategic sequence right. This principle ensures companies not only create a leap in value to the mass of buyers but also to build a viable business model to produce and maintain profitable growth. In ensuring that companies build a business model that profits from the blue ocean they have created, it addresses business model risk. This principle articulates the sequence in which managers should create a strategy to ensure that both their company and their customers win as they create new business terrain. Such a strategy follows the sequence of utility, price,...
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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.

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