Adam, the owner of The Toy Box (a toy store), has chosen his products carefully. They are all handmade of wood; none are cheap g
ames made of cardboard and paper. He knows he will be selling his toys to both adults and children; for example, his expensive chess and backgammon sets are quite expensive because the board and pieces are all made of wood by local artists and craftsmen. He knows that his customer base will not include parents who are looking for an inexpensive toy for their children or to give as a birthday gift; there is another store in town that offers mass-produced games. As part of his marketing outreach, Adam offers "game nights" where he sets up game boards and invites local teens and adults to take part in light-hearted competitions, where the winners receive a 10 percent discount to a game at the Toy Box. All of Adam’s activities are aimed at giving Adam a sustainable competitive advantage through ___________.a. defensive strategy b. blue ocean strategy
c. diversified portfolio
d. vertical integration
e. sustainable competitive advantage
Instead of competing against rival companies in the mass-produced games market (red ocean), Adam is carving out his own market by offering the consumer a higher end product that, although is still composed of games, consists a in whole new segment with much less competition, if any (blue ocean).
Therefore, the correct answer is b. blue ocean strategy
Blue ocean strategy introduces a simultaneous pursuit of differentiation and low cost to open a new market space and create new demand. it is about creating and capturing uncontested market space, thereby making the competition irrelevant. It is based on the view that market boundaries and industry structure are not given and can be constructed by the actions and beliefs of industry players.
Blue ocean in contrast, denote all the industries not in existence today, the unknown market space, unattained by competition, demand is created rather than fought over.
Typing resources allows managers to make better resource ordering decisions by describing the size, capability, and staffing qualifications of a specific resource.
Is a marketing strategy used by businesses to attract customers to a new service or product. By offering lower price during its initial offering, thats the way they do. The lower price, helps a new producto or service penetrate the market and attract customers .
