Blue Ocean versus Competitive Strategy: Theory and Evidence
2009-05-29
Research Paper
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Blue ocean strategy seeks to turn strategic management on its head by replacing ‘competitive advantage’ with ‘value innovation’ as the primary goal where firms must create consumer demand and exploit untapped markets. Empirical analysis has been focused on case study evidence and so lacks generality to resolve the debate. We provide a methodological synthesis of the theories enabling us to bring statistical evidence to the debate. Our analysis finds that blue ocean and competitive strategies overlap and managers do not face a discrete either/or decision between each strategy. Our evidence for the Dutch retail industry indicates that blue ocean strategy has prevailed as a dominant long term viable strategy.
Keywords
Classifications using
Journal of Economic Literature (JEL) Classification System
- L26 : Entrepreneurship
- O32 : Management of Technological Innovation and R&D
- M21 : Business Economics
- M : Business Administration and Business Economics; Marketing; Accounting
- M13 : New Firms; Startups
Automatically Extracted Terms
- strategy
- profit
- ocean
- number
- ocean strategy
- innovation
- parameter
- market
- level
- shop type
- effect
- competition
- model
- industry
- change
- management
- equation
- beach
- variable
- equilibrium
