Blue ocean

Question 1

Industry assumptions

Answer 1

‘Many companies take their industry’s conditions as given and set strategy accordingly. Value innovators don’t. No matter how the rest of the industry is faring, value innovators look for blockbuster ideas and quantum leaps in value’

Question 2

Strategic focus

Answer 2

Normally companies compare their strengths and weaknesses with their competitors and focus on building their advantage.

‘Conventional logic leads companies to compete at the margin for incremental share’

Question 3

Assets and capabilities

Answer 3

Assess business opportunities without being constrained or biased by they have at a given moment.

Question 4

Product and service offerings

Answer 4

Cross boundaries between existing offerings.

Question 5

Example

Answer 5

e.g. CNN launching 24 hour news channel.

Created a market and was able to produce programming for 24hours a day at a fifth of the cost for network news channels.