প্রশ্ন ও সমাধান

Read the following excerpt and answer the next 5 questions below:Despite a long-term decline in the circus industry, Cirque du Soleil profitably increased revenue 22-fold over the last ten years by reinventing the circus. Rather than competing within the confines of the existing industry or trying to steal customers from rivals, Cirque developed uncontested market space that made the competition irrelevant. Cirque created what is called a blue ocean, a previously unknown market space. In blue oceans, demand is created rather than fought over. There is ample opportunity for growth that is both profitable and rapid. In red oceans existing companies in the industry compete to grab a greater share of limited demand. As the market space gets more crowded, prospects for profits and growth decline. Products turn into commodities, and increasing competition turns the water bloody.There are two ways to create blue oceans. One is to launch completely new industries, as eBay did with online auctions. But it's much more common for a blue ocean to be created from within a red ocean when a company expands the boundaries of an existing industry. A blue ocean strategy encourages companies to focus less on their competitors and more on alternatives, while at the same time focusing less on their current customers and more on potential new customers. While competitive strategy would advise companies to enter attractive industries and avoid unattractive ones, blue oceans can be created in any industries, be they attractive or unattractive, stagnant or fast growing, high tech or low tech. It is all about creating new market space rather than letting the existing market structure confine strategic choices.Creating blue oceans builds brands. Along with Cirque, Southwest Airlines offers an example of successful blue ocean strategy execution. Southwest tapped into a customer base who preferred driving to air travel due to the lower cost. Instead of competing with other airlines, Southwest positioned itself as an alternative to cars and offered reduced prices, improved check-in times and increased flight frequency. Winners in a blue ocean strategy like Southwest, use 'value innovation' to drive their strategy. However, a blue ocean strategy is inherently disruptive and that makes it far riskier than a red ocean strategy.The primary purpose of the passage is to: