Why do you think Simple Wardrobe has a blue ocean strategy?

choose the correct option by the info shown in the image:

$-$ Eliminating wardrobe choices reduces value for customers but saves more costs than the decrease in value.

$-$ Eliminating wardrobe choices adds value for customers while increasing costs by less.

$-$ Eliminating wardrobe choices adds value for customers while saving costs from economies of scale.

Simple Wardrobe

Concept: Customers sign up for a subscription that replaces their existing wardrobe over time with a

combination of basics and accent items. Each day customers are provided with three outfit choices to

choose from based on their wardrobe.

Products$/$Services

Startup kit $-$ larger package of shirts, pants, etc to start the process

Monthly refresh $-2-4$ new pieces to keep wardrobe fresh

Restock $-$ individual basics that need to be replaced

Business Model

Outsource basic design

Staff designer to oversee fit with image and options

Increase design team over time as needed

Outsource manufacturing of shirts, pants, etc.

Ship directly from manufacturer to customers

Typical subscriptions give customers options and returns

This would dictate customer selections with no options$/$returns

Maintain database of customer clothing options

Develop AI to offer daily wardrobe suggestions

Insights and Innovations