A Blue-Ocean Strategy

question 48

Multiple Choice

A blue-ocean strategy

• A)is an offensive strike employed by a market leader that is directed at pilfering customers away from unsuspecting rivals to boost profitability.
• B)involves an unexpected (out-of-the-blue)preemptive strike to secure an advantageous position in a fast-growing market segment.
• C)works best when a company is the industry's low-cost leader.
• D)involves abandoning efforts to beat out competitors in existing markets and instead invent a new industry or new market segment that renders existing competitors largely irrelevant and allows a company to create and capture altogether new demand.
• E)involves the use of highly creative, never-used-before strategic moves to attack the competitive weaknesses of rivals.

---

Definitions:

Efficiency

The optimal use of resources to achieve the best possible outcome or output with the least waste of time and effort.

Distort Incentives

A situation where economic or policy mechanisms result in unintended or undesirable behaviors, often leading to inefficiencies.

Income Taxes

Taxes imposed by governments on individuals or entities based on their income or profits.

Poor People

Individuals or groups who lack the financial resources and possessions needed for a minimum standard of living.