Which of the Following Statements About Blue Ocean Thinking Is

question 134

Multiple Choice

Which of the following statements about blue ocean thinking is true?

• A) It involves designing creative business ventures to positively affect both a company's cost structure and its value proposition to consumers.
• B) In blue ocean thinking, industry boundaries are defined and accepted, and the competitive rules of the game are known.
• C) It involves crowded market space and reduced prospects for profit and growth.
• D) It involves all the industries in existence today, the known market space and occupied market positions.
• E) In blue ocean thinking, value to consumers comes from reintroducing factors the industry has previously offered.

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Definitions:

Normal Profit

The minimum amount of profit needed for a company to remain competitive in the market; it equals the total opportunity costs of a firm.

Economic Profits

The surplus or profit earned by a firm or individual after accounting for both explicit and implicit costs.

Purely Competitive Industry

An industry characterized by many small firms producing identical products where no single firm can influence the market price.

Consumer Demand

The desire and willingness of consumers to purchase goods and services at given prices.