Question

Which of the following is NOT characteristic of a red ocean strategy?

a. Beat the competition.
b. Exploit existing demand.
c. Align the whole system of a company’s activities in pursuit of differentiation or low-cost.
d. Make the value cost tradeoff.
e. Align the whole system of a company’s activities in pursuit of differentiation and low cost.

Answer 1

Answer:

c. Align the whole system of a company’s activities in pursuit of differentiation or low-cost.

Explanation:

A red ocean strategy refers to the strategy which focuses on fighting and defeating the prevailing competition in the market. The competition is held in the existing market. The primary motive of such strategies revolves around beating the competition. Also, the motive lingers upon capturing the maximum of the demand existing in the market. Here, the market already has a significant position. Also, the consumers' demands of the products and services are known primarily.