What type of strategy aims to target a new market where competition is not yet present instead of going where many firms are already competing on price and the gains of one firm are often at the expense of another?

Question

Business

Brayden Zhang

8 October, 10:33

What type of strategy aims to target a new market where competition is not yet present instead of going where many firms are already competing on price and the gains of one firm are often at the expense of another?

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String Bean · Answer 1

Answer: Blue ocean strategy

Explanation:

Blue ocean strategy is the concurrent pursuit of low cost and differentiation to establish a new market space and also create new demand. The strategy is about the creation and capturing of an uncontested market thereby making competition irrelevant.

Blue oceans target markets where there are no existing competition. In blue oceans, demand is established rather than competed and this leads to rapid opportunity for growth and profitability. A blue ocean describes the broader, deeper potential that can be found in an unexplored market.