Blue Ocean Strategy

Companies tend to do the following:

1) Define their industry similarly and focus on being the best within it

2) Look at their industries through the lens of generally accepted strategic groups and strive to stand out in the strategic group they play in

3) Focus on the same buyer group, be it the purchaser, the user, or the influencer

4) Define the scope of the products and services offered by their industry similarly

5) Accept their industry’s functional or emotional orientation

6) Focus on the same point in time – and often on current competitive threats – in formulating strategy

(48)

Despite the differences in form and function, people go to a restaurant for the same objective that they go to the movies: to enjoy a night out. These are not substitutes, but alternatives to choose from. (49)

A shift in price, a change in model, even a new ad campaign can elicit a tremendous response from rivals within an industry, but the same actions in an alternative industry usually go unnoticed. (50)

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