A blue ocean strategy differs from a low-cost strategy in that

Multiple Choice

• economies of scale are more important to a blue ocean strategy, while economies of scope are more important to a cost-leader.

• the focus of a blue ocean strategy is on lowering the economic value created, whereas a cost-leader focuses on increasing the economic value created.

• the intent of a blue ocean strategy is not to be the absolute lowest-cost provider because a blue ocean must also increase perceived value.

• a blue oceans research and development focus is on process technologies, and a cost-leaders focus is on product technologies.