General Concepts
1. Who authored the book “Blue Ocean Strategy”?
a) Michael Porter
b) Philip Kotler
c) W. Chan Kim and Renée Mauborgne
d) Clayton Christensen
Answer: c) W. Chan Kim and Renée Mauborgne

2. What does the term “Blue Ocean” refer to?
a) Saturated markets
b) Competitive industries
c) Uncontested market spaces
d) Cost-focused strategies
Answer: c) Uncontested market spaces

3. What is the opposite of a Blue Ocean?
a) Green Ocean
b) White Ocean
c) Red Ocean
d) Black Ocean
Answer: c) Red Ocean

4. Which of the following is a core concept of Blue Ocean Strategy?
a) Cost optimization
b) Value innovation
c) Brand loyalty
d) Price leadership
Answer: b) Value innovation

5. What is the primary focus of Blue Ocean Strategy?
a) Outperforming competitors
b) Creating new market demand
c) Cost reduction
d) Customer retention
Answer: b) Creating new market demand

6. What is “Value Innovation”?
a) Improving technology
b) Creating value while reducing costs
c) Marketing innovation
d) Increasing operational efficiency
Answer: b) Creating value while reducing costs

7. What tool is used to visualize a company’s current position in the industry?
a) SWOT analysis
b) PESTEL analysis
c) Strategy Canvas
d) BCG Matrix
Answer: c) Strategy Canvas

8. What does ERRC stand for?
a) Explore, Rebuild, Refine, Create
b) Eliminate, Reduce, Raise, Create
c) Evaluate, Rethink, Revise, Cultivate
d) Examine, Reorganize, Reimagine, Control
Answer: b) Eliminate, Reduce, Raise, Create

9. Which of the following is not a principle of Blue Ocean Strategy?
a) Competing to win in current markets
b) Reconstructing market boundaries
c) Creating new demand
d) Aligning strategies with value and cost
Answer: a) Competing to win in current markets

10. What does the Four Actions Framework help with?
a) Optimizing resource allocation
b) Identifying factors to eliminate, reduce, raise, and create
c) Improving employee performance
d) Benchmarking against competitors
Answer: b) Identifying factors to eliminate, reduce, raise, and create

11. Which industry is often associated with Cirque du Soleil’s Blue Ocean Strategy?
a) Film production
b) Circus entertainment
c) Concert tours
d) Amusement parks
Answer: b) Circus entertainment

12. Which of the following is an example of a Blue Ocean company in the airline industry?
a) Southwest Airlines
b) Delta Airlines
c) Lufthansa
d) British Airways
Answer: a) Southwest Airlines

13. What is a key characteristic of Blue Ocean companies?
a) High cost of operations
b) Offering differentiated yet affordable products
c) Imitative strategies
d) Rigid segmentation
Answer: b) Offering differentiated yet affordable products

14. Which of the following uses Blue Ocean Strategy principles?
a) Walmart
b) IKEA
c) Target
d) eBay
Answer: b) IKEA

15. Which car company’s small electric vehicle is an example of a Blue Ocean strategy?
a) Toyota Prius
b) Tesla Model S
c) Ford Focus
d) Chevrolet Volt
Answer: b) Tesla Model S

16. What are the three tiers of noncustomers?
a) Existing, Potential, Lost
b) Immediate, Refusing, Unexplored
c) Core, Secondary, Tertiary
d) Primary, Marginal, Neutral
Answer: b) Immediate, Refusing, Unexplored

17. What is the primary objective of reconstructing market boundaries?
a) Optimizing operational costs
b) Avoiding direct competition
c) Strengthening customer loyalty
d) Expanding customer segments
Answer: b) Avoiding direct competition

18. Which tool classifies businesses as Pioneers, Migrators, or Settlers?
a) VRIO framework
b) Strategy Canvas
c) Pioneer-Migrator-Settler Map
d) BCG Matrix
Answer: c) Pioneer-Migrator-Settler Map

19. What is the aim of using the Strategy Canvas?
a) To evaluate financial risks
b) To identify opportunities in the industry
c) To benchmark against competitors
d) To increase customer retention
Answer: b) To identify opportunities in the industry

20. Why is the term “Blue Ocean” used?
a) It emphasizes competition
b) It symbolizes unexplored market potential
c) It refers to environmental markets
d) It highlights efficiency
Answer: b) It symbolizes unexplored market potential

21. Which of the following is eliminated in Blue Ocean Strategy?
a) Factors that no longer provide value
b) Customer loyalty programs
c) Product diversity
d) Competitor analysis
Answer: a) Factors that no longer provide value

22. How does Blue Ocean Strategy differ from traditional strategies?
a) Focuses on cost-cutting only
b) Creates uncontested market spaces
c) Increases competition among players
d) Maximizes market share
Answer: b) Creates uncontested market spaces

23. What does reducing factors in the ERRC grid aim to achieve?
a) Enhance customer loyalty
b) Minimize unnecessary costs
c) Improve operational efficiency
d) Increase product diversity
Answer: b) Minimize unnecessary costs

24. In the ERRC framework, what does “Raise” mean?
a) Increase costs
b) Improve factors that customers value
c) Expand product range
d) Boost customer retention
Answer: b) Improve factors that customers value

25. What does “Create” in the ERRC framework focus on?
a) Introducing new factors that add value
b) Enhancing existing strategies
c) Eliminating competition
d) Reducing costs
Answer: a) Introducing new factors that add value

41. What is the key benefit of the Strategy Canvas?
a) Identifies cost-saving areas
b) Highlights customer preferences
c) Maps industry factors and future opportunities
d) Evaluates team performance
Answer: c) Maps industry factors and future opportunities

42. What is the role of the ERRC grid in Blue Ocean Strategy?
a) Measures financial performance
b) Creates marketing strategies
c) Reconfigures customer touchpoints
d) Identifies areas to Eliminate, Reduce, Raise, and Create
Answer: d) Identifies areas to Eliminate, Reduce, Raise, and Create

43. Which company exemplifies Blue Ocean Strategy in the low-cost fashion market?
a) Gucci
b) Zara
c) H&M
d) Uniqlo
Answer: d) Uniqlo

44. What does the term “Tipping Point Leadership” relate to in Blue Ocean Strategy?
a) Employee management techniques
b) Driving change through minimal resources
c) Building customer loyalty
d) Avoiding competition
Answer: b) Driving change through minimal resources

45. How does Blue Ocean Strategy redefine industry competition?
a) By directly outperforming competitors
b) By acquiring rival firms
c) By creating unique value propositions
d) By lowering operating costs
Answer: c) By creating unique value propositions

46. Which of the following is a limitation of Blue Ocean Strategy?
a) Lack of focus on differentiation
b) High dependence on competition
c) Difficulty in sustaining the new market
d) Limited scope of application
Answer: c) Difficulty in sustaining the new market

47. Why is Blue Ocean Strategy seen as a long-term approach?
a) It involves low risks
b) It creates sustainable demand
c) It focuses on immediate market share
d) It reduces customer acquisition costs
Answer: b) It creates sustainable demand

48. Which of the following is not part of the Four Actions Framework?
a) Eliminate
b) Raise
c) Automate
d) Create
Answer: c) Automate

49. What does creating “new demand” in Blue Ocean Strategy mean?
a) Expanding into competitor markets
b) Attracting noncustomers
c) Increasing marketing spend
d) Offering free trials
Answer: b) Attracting noncustomers

50. Which of the following focuses on noncustomers to unlock new markets?
a) Red Ocean Strategy
b) Differentiation Strategy
c) Blue Ocean Strategy
d) Market Share Strategy
Answer: c) Blue Ocean Strategy

51. What is the primary goal of the Blue Ocean Strategy?
A. To compete in existing markets
B. To create uncontested market space
C. To reduce production costs
D. To increase market share in saturated markets
Answer: B) To create uncontested market space

52. Which of the following is a key tool used in the Blue Ocean Strategy?
A. SWOT Analysis
B. Value Curve
C. Porter’s Five Forces
D. BCG Matrix
Answer: B) Value Curve

53. What does the term “Red Ocean” refer to in the Blue Ocean Strategy?
A. A market space with no competition
B. A highly competitive and saturated market
C. A market focused on innovation
D. A market with low profitability
Answer: B) A highly competitive and saturated market

54. Which of the following is an example of a Blue Ocean Strategy success story?
A. Coca-Cola
B. Apple’s iTunes
C. McDonald’s
D. Walmart
Answer: B) Apple’s iTunes

55. What is the purpose of the “Four Actions Framework” in the Blue Ocean Strategy?
A. To analyze competitors’ strengths
B. To reduce costs and increase value simultaneously
C. To identify new market opportunities
D. To eliminate, reduce, raise, and create factors in the market
Answer: D) To eliminate, reduce, raise, and create factors in the market

56. Which of the following is NOT a principle of the Blue Ocean Strategy?
A. Focus on competing in existing markets
B. Reconstruct market boundaries
C. Focus on the big picture, not the numbers
D. Get the strategic sequence right
Answer: A) Focus on competing in existing markets

57. What is the main risk of a Blue Ocean Strategy?
A. High competition
B. Market uncertainty and lack of demand
C. Low profitability
D. High production costs
Answer: B) Market uncertainty and lack of demand

58. Which of the following best describes the concept of “Value Innovation”?
A. Offering lower prices than competitors
B. Creating superior value for buyers while reducing costs
C. Focusing on niche markets
D. Increasing advertising spend
Answer: B) Creating superior value for buyers while reducing costs

59. Who are the authors of the book Blue Ocean Strategy?
A. Michael Porter and Philip Kotler
B. W. Chan Kim and Renée Mauborgne
C. Peter Drucker and Jim Collins
D. Clayton Christensen and Steve Jobs
Answer: B) W. Chan Kim and Renée Mauborgne

60. What is the significance of the “Six Paths Framework” in the Blue Ocean Strategy?
A. It helps identify new market spaces by looking across industries
B. It focuses on reducing operational costs
C. It analyzes competitors’ strategies
D. It measures customer satisfaction
Answer: A) It helps identify new market spaces by looking across industries