Business – 6.2 Business strategy – Developing business strategy | e-Consult
6.2 Business strategy – Developing business strategy (1 questions)
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Answer:
- Primary focus
- Blue Ocean Strategy: Seeks to create uncontested market space (a “blue ocean”) by redefining value‑curves and making competition irrelevant.
- Porter’s Five Forces: Analyses the existing competitive structure of an industry to assess profitability and to position the firm within that structure.
- Market environment addressed
- Blue Ocean targets markets that are either non‑existent or poorly served, encouraging innovation and differentiation.
- Porter’s model assumes a defined industry and evaluates the intensity of rivalry, threat of new entrants, bargaining power of suppliers and buyers, and threat of substitutes.
- Real‑world examples
- Blue Ocean: Cirque du Soleil combined circus arts with theatre, creating a new entertainment genre and attracting a different audience.
- Porter’s Five Forces: Airlines use the model to understand high rivalry, low supplier power (fuel), high buyer power (price‑sensitive passengers), and the threat of low‑cost carriers.