Strategic position
Competitive advantage is determined jointly by:
Industry effects and Firm effects
Seeks to create value through unique product qualities at a similar cost
Differentiation strategy
What type of firm optimizes costs to provide a lower price to customers
A Cost Leader
Lack of what type of awareness is a key driver of differentiation strategy?
Price
Proper use of what curve is a key to success using the Blue Ocean Strategy?
Value Curve
Economic value created equals:
Percieved value minus total costs
Achieving a higher value at the same cost
Cost Parity
This refers to the cost of Raw materials, capital, labor, and technology
Cost of Input factors
Overshooting what type of appeal creates risk?
Differentiated Appeal
What does Blue Ocean Strategy create for the firm and the customer?
A leap in value
Economic value in a specific product market determines:
The Strategic Position
The most common way to increase value
Increasing costs
Allows firms to spread costs over a larger output
Economies of scale
What type of risk can a new rival or substitute create
Risk of Replacement
What are the two types of business strategies used to create Blue Ocean Strategy?
Differentiation and cost-leadership activities
A strategic trade-off is:
Choosing between being a differentiator or a Cost-Leader
Product features, Customer service, and Compliments are examples of
Value drivers
Employees getting used to using a new process
learning curve
The need to be so unique can create what type of lack?
Price Awareness
What term is used to describe the opposite of the Blue Ocean Strategy?
Red Ocean
In most cases, a successful firms strategic approach is
Clear, meaning the firm is either a cost-leader or a differentiator
Achieving a higher economic value allows companies to
Charge a premium price
Employees getting used to new technology
Experience curve
When type of attributes do customer focus switch to when price is no longer an issue?
Non-price Atrributes
For Blue Ocean Strategy to succeed what key form of innovation must be used?
Value Innovation