Academic journal article Academy of Strategic Management Journal

A Coherent Metasynthesis of Blue Ocean Strategy (Bos) Using Grounded Theory Approach

Academic journal article Academy of Strategic Management Journal

A Coherent Metasynthesis of Blue Ocean Strategy (Bos) Using Grounded Theory Approach

Article excerpt

INTRODUCTION

The business world is extremely focused. The chiefs of the business are changing their technique to support in the aggressive business world. Some famous key systems for the formation of new plans of action have been produced in the previous decades. By along these lines, the strategy named "Blue Ocean Strategy" has been presented by Kim & Mauborgne (2004) which got worldwide attention and acknowledgment. In the present business condition, most firms work under immense rivalry and attempt to do everything to pick up more market share in any industry. At the point when there is restricted space to develop, organizations attempt and search for verticals or roads of finding new business where they can appreciate uncontested piece of the pie or "Blue Ocean". A blue sea exists when there is potential for higher benefits, as there is no opposition or immaterial rivalry.

The idea of blue ocean depends on the possibility that the business universe is comprised of two spaces (or ocean), the red ocean and the blue ocean. The red ocean speaks to the known market space where organizations contend over a portion of the market. In endeavors to beat rivals, the rivalry turns savage (turning the water bloody, thus the term red) as the space winds up swarmed or crowded, the possibilities of growth decreases as the space where the company and its competitors presently compete to resolve consumers' difficulties. Pink Ocean, on the other hand, is the space where the companies do not currently have offerings, but competitors compete with each other to solve some subset of consumers' problems. Then again, the blue ocean as referred by Kim & Mouborgne (2005) is the space where your competencies allow you to solve consumers' problems that your competition either cannot solve or is not currently addressing. That means Blue Ocean speaks to the obscure market space and in this manner, the ventures not in presence today. In Blue Ocean, waters are clear and untouched by rivalry. Along these lines, production of new markets is boundless and the possibility to develop is tremendous.

Blue Ocean Strategy is related to a business opportunity for an item where there is no opposition or less rivalry. It enables the organization to extract more profits through increased price as the product has unique attributes. The blue ocean strategy is a business theory that recommends organizations to search for new ways to achieve uncontested market space than rivaling comparable organizations or offerings. The term is derived from the book titled "Blue Ocean Strategy" by Kim & Mauborgne (2004) in light of an investigation of 150 vital moves crossing in excess of a hundred years and thirty businesses. The methodology speaks to the concurrent quest for high item separation and minimal effort, accordingly making rivalry insignificant. These vital moves make a jump in an incentive for the organization, its purchasers, and its workers while opening new request and making the opposition unessential. Blue Ocean is a similarity to depict the more extensive, more profound capability of market space that isn't yet investigated.

LITERATURE REVIEW

Background

Creation of blue oceans substantially affects the organization's development. In a business launch study of 108 companies, Kim & Mauborgne (2004) found that 86% of the launches were based on extensions/improvement of existing products (Red Ocean). These launches accounted for 62% of the revenue and 39% of the profits. On the other hand, the remaining 14% of the launches which were based on new markets (Blue Ocean) accounted for 38% of the revenue, yet 61% of the profits (Kim & Mauborgne, 2005). Through their book and their teachings, the professors give us ways on how competition can be crushed by creating an entirely new territory with the business practices. The strategy can be applied to various sectors and stay relevant to various businesses. The Blue Ocean strategy challenges everything known about strategic success and gives a systematic approach to making competition irrelevant. …

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