BLUE OCEAN STRATEGY AS A PREDICTOR FOR EFFECTIVE PERFORMANCE OF THE MEDIUM-SIZED AND LARGE BUSINESSES

Caroline Rosemary Motswene, Martelize Hamman

Abstract


Constant new value innovations to create new values and improve the features of existing products and services are a prerequisite for effective performance in the increasingly competitive South African marketplace. This research study used a case study evaluation of the effectiveness of the application of Blue Ocean strategies by medium-sized and large businesses in Pretoria. The motive of the study was to identify major inhibitors and suitable remedial business strategies that can be adopted to improve the application of Blue Ocean strategies. The study was qualitative, using a sample of 20 participants comprising of managers drawn from medium-sized and large businesses in Pretoria. Thematic analysis of the findings revealed that some of the motivators for the application of the Blue Ocean strategy are often linked to market saturation and the need to reduce costs. To enhance the effective use of Blue Ocean strategy, it was recommended that executives consider using remedial strategies that include; development and nurturing a culture of research and innovation, constant environmental analysis, identification of gaps and opportunities, effective marketing of new Blue Ocean ventures, and strategic control and modifications to improve Blue Ocean ventures.


Keywords


Corporate strategy; divesture; reconstructionism; oligopoly; utility cycle.

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