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QUESTION

Strategic Management: Critical Analysis of Blue Ocean Strategy in Strategic Management
Harvard Referencing Style with at least 30 references and a minimum of 20 peer reviewed
references. No cover page and table of content needed.

1. Introduction to Blue Ocean strategy
2. Academic definition of various authors on the concept?
3. Critically examine the concept
4. What was the arguments for its creation? / How Blue Ocean strategy fits in today? /
Have Blue Ocean strategy evolved?
5. What do different academic researchers say are the strengths and weakness of Blue
Ocean Strategy?
6. What are the arguments for and against this concept? (pro/cons)
7. Critically analyze the different tools available for Blue Ocean
8. What is the best way to make Blue Ocean strategy work in practice? Best way to
implement Blue Ocean Strategy concept.
9. What does an organization need to pay attention on, to make Blue Ocean strategy
work?
10. Is Blue Ocean strategy relevant or not to today’s business challenges?
11. How does Blue Ocean strategy fit today with other concepts of Strategic
Management?
12. What other Strategic Management strategies that works well with Blue Ocean
Strategy?
i. Core competency
ii. merger and acquisition
iii. Can Balance Score Card analysis tool fit into BOS?

Remarks: Critically examine Blue Ocean Strategy in Strategic Management with a range of
authors on what is said about the concept and the quality of the arguments.

ANSWER

Critical Analysis of Blue Ocean Strategy in Strategic Management

Today's managing computer compelled the evil, the stubborn and reckless person to conform with rules and legislation that destroy creativity as well. There is little time in today's environment to focus on past glories, and companies need to adjust their tactics more than ever. Today humans have been growing their independence in many regions, such as measurement, space, time, and capacity, to eliminate restriction barriers. In other terms, citizens have a broader option in different fields of existence, with more power over materials, energy, and knowledge. In today's competitive environment, it is really important to provide strategic analysis at the organizational level. The speed of environmental shifts would give a little more efficient heavy strategic preparation. A structural and applicable strategy that might contribute to strategic movements in a limited period can be substituted. Many of the groups that undertake the initiatives for the 21st century assume that our environment is evolving so continuously that never before. As these improvements take effect in the shortest period, we may freeze much of the data to prepare a long term

According to Kim and Mauborgne (2005), blue ocean strategy entails businesses building new growth prospects by concentrating on strategies to circumvent or defeat the current competition in the direction of new and undisputed markets with expanding frontiers and potential. Companies often work within a business universe and can be seen as two oceans: red oceans that reflect today's industry and blue oceans containing all sectors that do not reside in unfamiliar market areas (Johnson, Scholes & Whittington, 2005).

Amid rising dynamism in all manufacturing ecosystems, blue oceans' need is emanating from accelerating technological change (Hamel & Prahalad, 2014). Globalization has led to almost universal access to goods and services in regions and increased commodity and services commoditization, market wars, and related slow-downs. Lee and Gaynor (2006) said Differentiating products have become extremely challenging in most product and service groups, and costs have become the main catalyst for market development and profitability (Kim and Mauborgne, 2005).

The subsequent economic erosion resulting in competitive competitiveness will involve a truly successful disruptive approach to open up new markets, according to Burke, Stel, and Thurik (2010), as the number of companies in a sector grows due to their attractiveness. Therefore, it is normally probable to hit a saturation stage in the market where all firms in that industry are more or less even break (Burke et al., 2010). Usually, multiple businesses continued to share common traditional expertise, contributing to more efficient integration between them.

The core of the blue ocean approach is value innovation, which concentrates on increasing customer value while reducing expenditures simultaneously, thus generating the value jump for the business and customers. Cost control is accomplished by excluding and minimizing aspects with which a company competes, whereas the buyer's demand is elevated and elements never sold by the industry (Kim and Mauborgne, 2005). As contained in the Blue Ocean Strategy, this series of operations contribute to a quantum value benefit for an organization and its clients, which results in higher corporate efficiency.

The effect on two categories of metrics will clearly define the mark of a successful strategy: productive and financial performance; and an organization's competition and market place (Thompson et al., 2012). Kaplan and Norton (2001) claim companies need a series of measures to provide the top management with a quick yet complete vision. Financial steps must then be complemented by consumer loyalty operating measures, organizational systems, and innovation and education programs (Kaplan and Norton, 2001).

The overarching goal of the blue ocean strategy is to build undisputed market spaces with an extraordinary potential for companies to expand quite profitably. Blue ocean tactics are focusing businesses on strategic trends and competition. Kim and Chandler (2012) estimated that 14 percent of these launchings that represented distinct inventions in terms of value eventually represented an average of 61 percent of these organizations' overall income, having examined launched activities in 108 enterprises over 15 years. Accelerated technology advancements, commodity globalization, and commoditization threaten to weaken various businesses' returns in traditional red ocean environments (Christensen, 2017). In today's corporate climate, the need for innovative strategic methods reflected in the blue sea strategy for organizational efficiency sustainability.

The Blue Oceans Strategy obliges companies to rethink conditions that interfere with their market, such as luxury packaging, to change their cost structure to improve their simple efficiency (Henry, 2018). It needs businesses to determine when goods have been overdraft in a market to overcome their competitors and therefore reduce their focus on this factor (Kim and Mauborgne, 2005). Blue oceans describe non-customers' alternative sales streams and future consumers beyond the target market by growing new benefit elements for these buyers to stimulate new demand.

Mankins and Steele (2005) suggest that organizations' success is closely related to closing the policy gap by improved preparation and delivery. The method of the blue sea strategy includes disciplined preparation and implementation and unavoidable risk control. The Blue Ocean strategy allows businesses to pursue new markets and strategic groups to improve their total value proposal to rearrange internal processes towards learning and development.

Diverse researchers have been researching and analyzing the Blue Ocean's technique to practice and reorganize the capital of an enterprise in a parallel attempt to obtain low costs and distinction (Miano, 2013). The Blue Ocean Strategy implementation in the business- to-Business field was studied by Čirjevskis, Homenko, and Lačinova (2011). Čirjevskis et al. (2011) tried to ascertain a Blue Ocean Plan's adequacy and how the operational challenges in its execution can be resolved. Researchers recognized potential hurdles in applying the selected value creation strategies and recourse by these two firms to address virtually these obstacles (Wallace, Castaneda and McGregor, 2019). This included changes to the value chain and optimization of assets to build blue oceans in two chemical companies, Sika AG (Swiss) and Alexandra Plus LLC (Russian).

Lee and Gaynor, in 2006, in his study, described the Blue Ocean Strategy problems for the developing ICT markets. They found out that the Blue Ocean Approach is not liable in emerging markets for instability (Lee and Gaynor, 2006). Besides, the analysis showed that while the blue ocean approach explains how uncharted areas of the business can be found, it does not offer advice in designing a new market strategy to exploit them. Therefore, the study proposes a new tool called the Real Options System, which aims to develop a scalable architecture and experiment to reduce uncertainty (Lee and Gaynor, 2006).

Amit and Zott (2020) also confirmed that value innovation, particularly in economic transition times, is crucial in generating and appropriating value (Amit and Zott, 2020). The researchers, therefore, observed that value-driven businesses had risen faster than their rivals. Nyambane (2012) studied three major indigenous banks in the U.S. to adopt the Blue Ocean Strategy. The research assessed the required responses in the commercial banking industry's hyper-competitive sector. Romer (2014) indicated that the three banks have concentrated on implementing blue ocean strategies in critical strategic initiatives and specialized ventures. Bank problems involved matching competitive methods with the blue oceans' quest, essentially justifying value technologies when they were adopted, and structural and cultural barriers (Porter, 1980).

Some researchers find that the Blue Ocean policy and creativity complement each other. According to Schumpeter (2019), the blue ocean approach allows businesses to innovate and put innovative goods into the market. The case study explored the mechanism of generating sustained value for consumers by the mobile telephone giant through value innovation. The analysis showed that media firm emphasizes current and potential consumers and spends in the information economy and finds them to be more strategic to the management

The determinants for the adoption of the Blue Ocean Strategy by business banks in Kenya have been explored by Buisson & Silberzahn (2010). Buisson, B. & Silberzahn concentrated on the execution of the Blue Ocean Strategy Concept’s Four Behavior Structure. The scientists also indicated that advances in consumer control systems, production costs, and overheads had been minimized. New product and service categories have been expanded as a crucial aspect for the creation of blue oceans. Bowlby (2012) showed the major benefits of innovation by companies using the Blue-Ocean approach to address design. Aithal & Kumar (2015) explored how electronic musical instrument companies could boost their efficiency concerning the blue ocean strategy. The study examined current strategic tactics within the sector and concentrated on building undisputed business zones, capturing new demand, and fostering competition in value (Yang and Yang, 2011). The researcher also concentrated on evaluating the efficacy of this company's strategic approach to establish superior long-term leadership within its market.

The competitiveness of every corporation is inspired by its willingness to give its rivals a value-added plan (Kim et al., 2018). The Blue Ocean strategy follows this by pushing firms to recognize developments of merit that will boost their competitive position the most. For both low cost and differentiation methods, the Blue Ocean Strategy encourages a company to look past standard Red Ocean competitive practices and create additional demand in undisputed markets (Aspara, Hietanen, Parvinen, & Tikkanen, 2008). However, to guarantee that external powers do not compete with its territorial markets, the company must be well informed of the environmental dynamics. A company must protect its current leadership space by traditional blue ocean strategies when seeking new market spaces (Sani, 2012). Companies aim to strengthen their strategic role by designing and adopting low-cost methods and distinction. Companies have also concentrated on eliminating and reducing cost incurring criteria that the market deemed essential while also setting new requirements that their clients regarded as important. The organizations have built a Blue Ocean Strategy with this approach, which eventually improved and retained its success for eight years (Xiu-liang, 2007). Through its introduction, companies emerge in terms of profitability as the leading cement producers in the country.

In a nutshell, blue Ocean prospects in numerous locations and sectors have been successful. The business universe was enlarged as they were explored. As you know, this expansion is the root of development. Various firms desperately need to recognize innovative development models and strategies that are tangibly known on the Jordanian sector. It is anticipated that development above the current stage would occur through the acceptance and implementation of the principle of Blue Ocean in industrial companies. The paper created a realistic approach which can contribute to the Blue Ocean. It also included the technologies to allow a business to put itself in a position and to see that it compares with other businesses

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