JCDecaux's street furniture business had an operating margin as high as 40 percent, compared to what percentage for transport advertisements?

Correct answer: 18 percent.

Explanation

This is a quantitative question that requires careful reading of the text to distinguish between the profitability figures for two different types of traditional advertising mentioned in the JCDecaux example.

Other questions

Question 1

What is the third principle of blue ocean strategy, as discussed in Chapter 5?

Question 2

According to Chapter 5, what are the two conventional strategy practices that companies should challenge to maximize the size of their blue oceans?

Question 3

How did Callaway Golf apply the principle of reaching beyond existing demand?

Question 4

What was the key commonality Callaway Golf identified that united the mass of noncustomers?

Question 5

To maximize the size of a blue ocean, what reverse course should companies take according to Chapter 5?

Question 6

Which tier of noncustomers is described as minimally purchasing an industry's offering out of necessity but being mentally noncustomers of the industry?

Question 7

The example of the fast-food chain Pret A Manger is used in Chapter 5 to illustrate the strategy of unlocking which group of noncustomers?

Question 8

What were the three key commonalities that Pret A Manger identified among European city center professionals, its target first-tier noncustomers?

Question 9

Which tier of noncustomers is composed of people who have seen an industry's offerings as an option to fulfill their needs but have actively voted against them?

Question 10

How did the company JCDecaux create a blue ocean in the outdoor advertising space?

Question 11

According to Chapter 5, what was the operating margin of JCDecaux's street furniture business compared to that of traditional billboards?

Question 12

Which tier of noncustomers is described as the farthest from a market and composed of individuals who have never been targeted or considered potential customers by any player in the industry?

Question 13

The US defense aerospace industry's Joint Strike Fighter (JSF) program is presented in Chapter 5 as an example of aggregating demand from which group?

Question 14

The Joint Strike Fighter (JSF) program aimed to create a single airframe with three variants that shared approximately what percentage of their parts?

Question 15

What was the value of the massive Joint Strike Fighter (JSF) contract awarded to Lockheed Martin in 2001, which Chapter 5 describes as the largest military contract in history?

Question 16

What rule does Chapter 5 suggest for deciding which tier of noncustomers a company should focus on?

Question 17

The strategic orientation to 'think noncustomers before customers; commonalities before differences; and desegmentation before pursuing finer segmentation' is designed to achieve what primary goal?

Question 18

In the Callaway Golf example, what was the surprising effect of the Big Bertha club on existing golf customers?

Question 19

What fundamental problem with traditional outdoor advertising did JCDecaux identify as the reason many companies refused to use it?

Question 20

In the context of the Joint Strike Fighter (JSF) program, what were the highest-cost components that were common across all three military branches' aircraft?

Question 21

What insight does Chapter 5 suggest can be gained from studying noncustomers compared to existing, relatively content customers?

Question 22

In what year did the French company JCDecaux create the new concept in outdoor advertising called 'street furniture'?

Question 23

What does Chapter 5 identify as a risk for companies that compete by embracing customer preferences through finer segmentation?

Question 24

In the JSF program example, what were the two predominant factors that drove the Navy's separate aircraft purchase decision?

Question 25

What principle should guide a company's strategy formulation to maximize the scale of its blue ocean?

Question 26

What was the key insight about existing customers that Callaway Golf discovered through its study of noncustomers?

Question 27

Which company does Chapter 5 use as an example of a blue ocean created by targeting third-tier, unexplored noncustomers in the consumer goods space?

Question 28

What was the primary benefit JCDecaux's street furniture advertising offered over traditional billboards and transport ads?

Question 29

According to the Pret A Manger example, what is the key lesson about where to find the best insights for growing a blue ocean?

Question 30

In the Joint Strike Fighter (JSF) program, what were the two decisive requirements that kept the Marines from participating in joint aircraft purchases?

Question 31

In 2001, McDonald's purchased a 33 percent share of Pret A Manger for how much?

Question 33

Why is the final step in the strategic orientation described in Chapter 5 to pursue 'desegmentation before pursuing finer segmentation'?

Question 34

What does Chapter 5 state is the ultimate purpose of aggregating the greatest demand for a new offering?

Question 35

What was the Pentagon's conclusion in a 1993 report, which set the stage for the JSF program?

Question 36

According to the chapter, what is the 'biggest catchment' that companies should aim for when deciding which noncustomers to target?

Question 37

The phrase 'Soon-to-be' is used in Figure 5-1 to describe which tier of noncustomers?

Question 38

What was the decisive requirement for the Air Force in the JSF program?

Question 39

By focusing on key commonalities across noncustomers and existing customers, what does Chapter 5 say companies can do?

Question 40

The phrase 'Refusing' is used in Figure 5-1 to describe which tier of noncustomers?

Question 41

According to the chapter, why is it not enough to only maximize the size of the blue ocean you are creating?

Question 42

What was the key disadvantage of traditional outdoor advertising that JCDecaux's street furniture concept overcame?

Question 43

The phrase 'Unexplored' is used in Figure 5-1 to describe which tier of noncustomers?

Question 44

In the Pret A Manger example, what did the first-tier noncustomers (city professionals) do before Pret's arrival?

Question 45

What is the key difference between the first and second tiers of noncustomers?

Question 46

The blue ocean strategy approach of reaching beyond existing demand is based on the idea of:

Question 47

What does the Callaway Golf example illustrate about a successful blue ocean offering's appeal?

Question 48

In the JCDecaux example, how did the company create a steady source of long-term revenue and profits?

Question 49

What is the key takeaway when Chapter 5 states that you should explore whether there are 'overlapping commonalities across all three tiers of noncustomers'?

Question 50

Historically, according to the JSF example, how was the defense aerospace industry regarded?