Research Journal of Economics & Business Studies - RJEBS - The ...

Blue Ocean Strategy and the dynamic nature of business strategies: an empirical
study conducted on the renewable and telecommunication sector of Bangladesh.
Md. Irfanuzzaman Khan, Senior Lecturer, School of Business, Bangladesh.
Abstract
This paper presents a methodical and critical analysis of the key elements regarding the strategic
management literature and the Blue Ocean strategy. It provides the direction for the development of
two sets of hypotheses which are redefined to formulate a “dynamic strategy” framework. The primary
theme of the conceptual framework is to identify the main components of strategy that has
continuously evolved over the years and establish the principle that business organisations have to
develop strategies according to the vibrant nature of the external environment through a dynamic
strategy process.
Empirical research on the renewable energy and telecommunication sector of Bangladesh is conducted
through a collection of research methods to gather sufficient evidence and knowledge about the
potential of the Blue Ocean Strategy. Additionally, examples of Google and Apple are analysed as
case studies for secondary research to strengthen the foundation of the research. Primary data’s
through surveys and questionnaires are systematically tested using analytical tools to maintain the
relationship between theories, hypotheses and the research findings. The paper concludes by answering
the research questions and objectives, addressing the research limitations and summarizing the
research findings to recommend the possibilities of future research.
Introduction
Strategies over the years have evolved with the changes of economies and industrialization. However,
the basic definition of strategy can be outlined as: “the continuous process of evaluation and control of
the business, monitoring its competitors to set objectives and strategies, to compete with potential
threats to the business and re-examining each strategy to evaluate any shortcomings due to changing
global economy, business environment, climate, technology, new competitors and political influences,
and modify strategic policies when necessary” (Lamb, 1984).
Nevertheless, there is still no consensus and evidence of a concrete definition or outline to business
strategy at this time. There are many authors including Chandler (1962), Ansoff (1965), Mintzberg
(1990) and Porter (1985), whose judgments of strategy, are still considered as the pillars of strategic
management. However, each of the authors has criticized each other based on several important
grounds. Thus, this paper goes on to explore the newest development of strategic management to
enhance a wider view: The Blue Ocean Strategy.
The basic philosophy of the Blue Ocean Strategy is for companies to come out of the eternal
competition in competitive markets by creating new demand via a set of principles, analytical tools and
frameworks. The methods primarily focuses on reorganizing the traditional approaches and reshaping
products and strategies by targeting non-users and thus creating new demand instead of competing for
existing demand (Kim and Mauborgne, 2005).
However, while Kim and Mauborgne (2005) strive to create uncontested market space, there are few
success stories of companies that have gained success by applying these theories in the practical world.
In addition, focusing on innovation as the foundation of the Blue Ocean Strategy, authors Kim and
Mauborgne (2005) failed to address several important points, for example, how to avoid imitations
when rivals will begin to copy a company’s product (Pollard, Wayne E. 2005).
Although, there are previous researches conducted on the principles of strategic management, this
paper aims to determine the dominant factors that changed strategy concepts over time from the
theoretical viewpoint. The critical analysis will enable to generate hypotheses out of the key
developments, providing the room to devise a conceptual framework based on the assumption:
www.theinternationaljournal.org > RJEBS: Volume: 02, Number: 08, June-2013 Page 18