Case Analysis Of Blue Ocean Strategy

Current globalization of world economy creates new economic realities. Increase in speed of technological advance, competition intensification, uncertainty caused by global economic crisis forces businesses to change quickly. Transformation enables them to be able to cope with the new economic, social and environmental challenges by raising efficiency and improving performance. Change always entails greater uncertainty, and for the company it means that quality and speed of decision-making is crucial, as it enables a company to (a) mitigate the risks, (b) retain efficiency and (c) support business continuity (Galavan, Murray, & Markides, 2008).
Kim and Mauborgne (2004) and Porter (1996) in their studies articulate the strategy as the process
Conventional competitive strategy suggests that the company has to strive to outpace the rivals by offering a better solution to the existing problem. Blue Ocean strategy aims at redefining the problem itself. Whereas, Blue Ocean strategy encourages the companies to fetch away the red ocean competition via creation of an unoccupied niche where there is no threat to be defeated by competitors. It offers a company to reject the satisfaction of existing, and often decreasing demand, while looking around at the competitors, and devote itself to creation of a new growing demand and avoidance of
Organization performance depends on its ability to respond to and manage environmental changes (White, 2004). Both conventional competitive-advantage worldview and blue oceans theory suggest that developing its strategy, the company has to assess thoroughly its conventional approaches to product development and implementation and to adjust them with “comprehensive consideration of resource constraints and uncertainty” (Zhao, You, & Zuo, 2010,