Question 3 of 6

BOS is a low-cost strategy that focuses on offering low prices.

You chose true, this is an incorrect answer.

BOS is not a low-cost strategy. Rather, BOS pursues differentiation and low cost simultaneously through reconstructing market boundaries. Instead of focusing on low cost per se, it seeks to create a leap in buyer value at a lower cost.

A blue ocean strategic move captures the mass of target buyers, not through low-cost pricing, but through strategic pricing. The key here is not to pursue pricing against the competition within an industry but to pursue pricing against substitutes and alternatives.

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