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Questions

Question 1

According to Chapter 6, what is the correct strategic sequence for building a commercially viable blue ocean idea?

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Question 2

What is the 'technology trap' that Chapter 6 warns companies about, using Philips' CD-i as an example?

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Question 3

The Buyer Utility Map presented in Chapter 6 is constructed from which two dimensions?

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Question 4

In Chapter 6, what two utility blocks did Ford's Model T primarily eliminate for the mass of people?

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Question 5

What is the primary purpose of the 'price corridor of the target mass' tool introduced in Chapter 6?

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Question 6

According to Chapter 6, what pricing strategy should a company consider if its blue ocean offering has high fixed costs and its attractiveness depends heavily on network externalities?

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Question 7

Chapter 6 describes target costing as an essential part of the strategic sequence. What is the correct method for this process?

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Question 8

What were the three principal levers that Chapter 6 identifies for companies to hit their target cost?

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Question 9

How did the Swiss watch company Swatch achieve a cost structure 30 percent lower than any other watch company, as cited in Chapter 6?

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Question 10

What is the final step in the strategic sequence that companies must address to ensure the successful actualization of a blue ocean idea?

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Question 11

According to Chapter 6, which three main stakeholder groups can pose adoption hurdles for a new blue ocean idea?

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Question 12

Chapter 6 uses the example of SAP's AcceleratedSAP (ASAP) to illustrate overcoming adoption hurdles with which stakeholder group?

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Question 13

What does the Blue Ocean Idea (BOI) Index, presented at the end of Chapter 6, provide?

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Question 14

According to the BOI Index analysis in Chapter 6, why was Motorola's Iridium considered a flop?

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Question 15

What example of 'pricing innovation' is used in Chapter 6 to show how companies can hit their target cost without raising their strategic price?

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Question 16

In the context of the strategic sequence, what two elements address the 'revenue side' of a company's business model?

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Question 17

Which stage of the buyer experience cycle, according to the map in Chapter 6, comes immediately after 'Use'?

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Question 18

Chapter 6 cites Ford's revolutionary assembly line as a cost innovation that cut the time to make a Model T from twenty-one days to how many days?

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Question 19

Why does Chapter 6 argue that it's increasingly important for companies to price their offerings to attract the mass of target buyers from the start?

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Question 20

When using the price corridor tool, Southwest Airlines priced its service against which alternative, according to Chapter 6?

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Question 21

What does Chapter 6 suggest a company should do if it cannot meet its target cost after streamlining operations and exploring partnerships?

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Question 22

What was Monsanto's mistake regarding the general public, as described in the 'Adoption' section of Chapter 6?

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Question 23

In the NTT DoCoMo i-mode example, what was the key technological choice that made its offering attractive to content providers and lowered their costs?

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Question 24

Which of the six utility levers from the Buyer Utility Map is described in Chapter 6 as the most commonly used?

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Question 25

When Ford introduced the assembly line, by what percentage did it cut labor hours, according to the quantitative data in Chapter 6?

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Question 26

In Chapter 6's discussion of adoption hurdles for employees, what was the consequence for Merrill Lynch when it announced its online brokerage service without adequately addressing employee concerns?

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Question 27

To identify the price corridor of the target mass, Chapter 6 suggests listing products and services that fall into which two categories?

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Question 28

What does Chapter 6 identify as the third element in the strategic sequence, which secures the 'profit side' of the business model?

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Question 29

Which of the following is NOT one of the six stages of the buyer experience cycle as listed in Chapter 6?

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Question 30

What is meant by a 'nonrival' good, as discussed in the context of strategic pricing in Chapter 6?

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Question 31

In the Swatch example in Chapter 6, the engineers reduced the number of inner working parts from one hundred fifty to how many?

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Question 32

What is the key difference between 'value innovation' and 'technology innovation' according to Chapter 6?

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Question 33

When assessing an idea with the Blue Ocean Idea (BOI) Index in Chapter 6, what question corresponds to the 'Price' criterion?

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Question 34

What does Chapter 6 propose as a method for a company to overcome the fear and resistance of its employees when introducing a new strategy?

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Question 35

What type of good is described in Chapter 6 as being 'partially excludable' and vulnerable to 'free riding'?

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Question 36

According to Chapter 6, if a company's proposed offering falls on the same space in the Buyer Utility Map as its competitors, what does this indicate?

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Question 37

Chapter 6 uses the failure of Philips' CD-i to illustrate what key point about the strategic sequence?

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Question 38

In the context of the price corridor of the target mass, what are 'products with different form and function, but same objective'?

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Question 39

How did NTT DoCoMo's partnerships with handset manufacturers contribute to its success, as explained in Chapter 6?

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Question 40

What is the primary risk that the strategic sequence of utility, price, cost, and adoption is designed to reduce?

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Question 41

What is the core reason a blue ocean strategy must be built on a robust business model, as stated at the beginning of Chapter 6?

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Question 42

In the Netflix example in Chapter 6, how did the company address employee adoption hurdles when shifting from DVD-by-mail to video streaming?

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Question 43

What specific question does the Buyer Experience Cycle tool (Figure 6-3) suggest managers ask for the 'Purchase' stage?

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Question 44

According to the logic of the price corridor tool in Chapter 6, why was Ford's pricing of the Model T against the horse-drawn carriage a strategic move?

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Question 45

What does Chapter 6 say is the consequence when a company's business idea fails the utility test in the strategic sequence?

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Question 46

When should a company pursue upper-boundary strategic pricing for its blue ocean offering, according to Chapter 6?

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Question 47

What is the key difference between how SAP and Oracle managed their sales forces, as highlighted in the partnering section of Chapter 6?

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Question 48

The Blue Ocean Idea Index in Figure 6-7 shows that NTT DoCoMo's i-mode scored a '+' (positive) on all four criteria. What does this signify?

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Question 49

In Chapter 6, what is the 'freemium' model cited as an example of?

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Question 50

Which of the six utility levers is NOT explicitly named in the list provided in Chapter 6?

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