BLUE OCEAN STRATEGY

Blue Ocean Strategy



Blue Ocean Strategy

Introduction

“Strategy” has always been one of the critical issues on the management studies, and the term is used ever more at different levels in various fields; so much so that it means “everything but ultimately nothing”. In this context, there is growing interest in the propagation of the concept of strategy and a great variety of themes have been used to explain the concept by management gurus, consultants and academics. In order to explore the opportunities for future research on strategy, it is necessary to trace its origins and evolution and to review its latest progress. The main objective of the paper is how the strategy will be implemented in our company which makes small generators for producing electricity. To meet this objective, we will change our business processes strategy, IT infrastructure and application, organisational structure. Subsequently, blue ocean strategy is chosen as the theme for further research and the related issues with the existing research on that theme are discussed. The third section details some research questions that arise from the earlier discussions and these research questions will form the basis for further research. Lastly, the paper concludes with the proposed research objectives as well as the direction and importance of future research.

Defining Strategy

Strategy has become the central focus in management literature and the business world for the past few decades. However, there is still no consensus and universal definition of strategy at this time. (Mintzberg, 1978, 934-38) defines strategy as a sequence of top management decisions that show a consistency or pattern over time. However, he views strategy as a phenomenon with various meanings. Therefore, he proposes five interconnected definitions for strategy that explicitly interpret its multiple meanings to help people negotiate this difficult field. Mintzberg's five definitions for strategy are plan, ploy, pattern, position, and perspective. Ansoff (1984, 89-91), on the other hand, regards strategy as a means to an end, seeing it as a set of decision-making rules to guide organisational behaviour. In Ansoff's view, the objectives represent the end that the company intends to achieve and strategy is the means to this end. He interprets strategy as a set of guiding rules (e.g., objectives, goals, concepts, rules, and policies) to deal with the micro and macro environments and treats it as a sophisticated phenomenon. Likewise, Thurik (2009, 78-81) asserts that strategy is the determination of the primary goals and objectives of a company and the implementation of an action plan for achieving these goals, and some researchers regard strategy as a rational decision-making process in allocating company's resources to match opportunities arising from the business setting. In brief, strategy can be defined as a blueprint or game plan that shapes the long-term direction, business objectives, and market position of the company to facilitate the management to allocate the available resources to conduct various value activities to attract customers and compete successfully in the marketplace. Nonetheless, the field of strategy has continued to evolve and expand over the years, ...