Assess the risks of a blue ocean strategy, and explain why it is difficult to succeed at value...

Assess the risks of a blue ocean strategy, and explain why it is difficult to succeed at value innovation.

■ A successful blue ocean strategy requires that trade-offs between differentiation and low cost be reconciled.

■ A blue ocean strategy often is difficult because the two distinct strategic positions require internal value chain activities that are fundamentally different from one another.

■ When firms fail to resolve strategic trade-offs between differentiation and cost, they end up being “stuck in the middle.” They then succeed at neither business strategy, leading to a competitive disadvantage.