08 eLMS Activity 2 – ARG

Instructions
Briefly answer the following with no more than five (5) sentences. (2 items x 10 points)
1. How does occupying an uncontested market space help the entrepreneur to break
out of red oceans? [Although the answer can be found on Page 2 of 08 Handout
1  (first paragraph), provide other possible answers.]

Uncontested marketplace helps entrepreneur to create demand, which is

not known to others. This makes competition irrelevant; this strategy is focuses
on creating, not competing. To break out the red ocean, companies must break
out of the accepted boundaries that define how they compete. Entrepreneur
should create a new markets or uncontested spaces and create strategies in
existing markets which offer a leap in value to the consumer. While most
businesses focus on the customers currently purchasing in their industry and take
customers from each other, in the Blue Ocean the focus is on trying to increase
the size of the industry by attracting people who have never purchased there
before

2. How will the Four (4) Actions Framework help an entrepreneur in pursuing a
venture?
This analytic tool complements the Four Actions Framework. It pushes
companies not only to ask the questions posed in the Four Actions Framework
but also to act on all four to create a new value curve (or strategic profile), which
is essential to unlocking a new blue ocean. The grid gives companies four
immediate benefits:

 It pushes them to simultaneously pursue differentiation and low cost to break the
value-cost trade off.
 It immediately flags companies that are focused only on raising and creating,
thereby lifting the cost structure and often over-engineering products and
services – a common plight for many companies.
 It is easily understood by managers at any level, creating a high degree of
engagement in its application.
 Because completing the grid is a challenging task, it drives companies to
thoroughly scrutinize every factor the industry competes on, helping them
discover the range of implicit assumptions they unconsciously make in
competing.