BLUE & RED OCEAN STRATEGY

Blue and Red Ocean Strategy- Jamaican Mobile Industry

Blue and Red Ocean Strategy- Jamaican Mobile Industry

Literature Review

The Jamaican mobile industry has developed at a fast pace. Over the past decade, the country has seen a boom of mobile service providers launching their business in the country. With advancements in the field of marketing and management; a number of strategies are applied in contemporary business to increase a firm's market share and its revenues (Farrell & Klemperer, 2006, pp. 1). In this literature review, we would discuss the relevance of blue and red ocean strategies with respect to Jamaica's mobile industry.

A thorough review would be conducted by identifying the important variables due to Jamaica's geographic location and the intensity of business among its mobile networks. Our literature review would encompass a detailed overview of mobile phone industry in Jamaica, the relevance and application of blue and red ocean strategies to mobile networks. Also, a thorough analysis would be conducted on the business prospects for mobile companies established in Jamaica and how they can adopt the blue and/or red ocean strategies to expand their business.

Overview

On a whole, the mobile phone industry could be considered as one of the fastest growing industries of the world. The mobile phone networks are continuously expanding; even in developing countries. The mobile phone industry has gone over major changes ever since its inception in the year 1994 (Klemperer, 2004, pp. 3). Hence, the industry has evolved over the years to meet customer expectations. According to the statistics of 2009, the total number of mobile phone subscriptions accounted to over 4 billion worldwide. Similarly, the sales users in the first quarter of 2010 were over 314 million. After the introduction of smart phones, the statistics have further increased. The growth has primarily been driven by an increased usage of mobiles in developing countries i.e. Jamaica and other countries of the Caribbean. According to a recent study, the IDC believes that “the sales of mobile phones would grow by an additional 11% - 12% in the next few years” (Thomas, 2013, pp. 4).

Jamaican Mobile Industry

Before the late nineties, the Jamaican telecommunications sector was solely dominated by a single company i.e. Cable and Wireless Jamaica (C&WJ). The company's name was changed to LIME (Landline Internet Mobile, Entertainment) at the end of 2008. In Jamaica, telecom companies were initially granted licenses for a period of 25 years which was later decreased due to immense competition in the field. LIME's licensure was valid till 2013; hence could get it extended for a further 25 years based on the company's performance (JFTC, 2013, pp. 1).

However, over the past decades a number of new entrants have made their mark in the mobile industry of Jamaica. Due to an increased activity in the mobile sector; Jamaica's economy has been stimulated and the country's foreign direct investment has increased. It continues to supplement market growth in the country. In the present literature review, we would highlight how the blue and ...