Chapter 13—Creating New Business
13.1
Blue ocean businesses and red ocean businesses both generally allow for above average earnings.
13.2
Barriers to long term success in existing product-markets do not include which of the following:
a. Markets are so dynamic that this is easy to bet behind and become less relevant.
b. Overcapacity in existing markets.
c. Transparency issues.
d. Fast responses by competitors
e. Low cost benefit ratio for incumbent organizations.
13.3
Innovation can create what is often termed as __________.
13.4
Innovator’s advantage provides the competitive advantages such as competitors’ inability to respond in a
timely manner, competitors’ inability to respond at all, or that the innovator cultivates a customer loyalty with
its position in the market.
13.5
True market pioneers often survive because they enter the market first and build position and are able to
withstand technological advances.
13.6
Successful early market leaders survive the difficulties of a first mover advantage by envisioning the mass
market, maintaining managerial persistence, financial commitment, _____________ and _____________.
13.7
Many blue ocean businesses can take one of two approaches to lower price points: ____________ or
____________.
13.8
Low-end disruptive innovation is where industries are altered by emerging products that feature a price that
appears dramatically low. Incumbent firms often employ this strategy.
13.9
Kirin was unable to compete with Asahi in part because of the authentic label.
13.10
Curses that plague new businesses include success and substantial availability of resources.
13.11
Drucker advises innovators to try to innovate for the future.
13.12
Transformational new business arenas can be based on offering a dramatically lower price point, analyzing
alternative industries to find white space, offering a systems rather than components, building on customer
insights or market trends and by collaborating with other people and firms.
13.13
The highest rated brand on perceived innovativeness was iPod.
13.13
Successful early market leaders tend to get traction in a smaller market before looking to the mass market.
13.14
The book suggests that one of six ways that new business is typically formed involves new distribution
channels.