OPENING TO THE BLUE OCEANS INSTEAD OF FIGHTING IN THE RED OCEANS: BUT HOW?

Abstract

The intense competition that emerged with globalization has affected businesses significantly. Businesses face various difficulties both in terms of maintaining their position in the market and in their growth activities due to the heavy impact of the existing competition in the market in which they operate. To overcome this situation, businesses have to continue their activities by developing innovative ideas. At this point, businesses can apply the strategy of creating a new and uncontested market area by turning to value-oriented innovations instead of tough competitive struggles under the same market conditions with their competitors. This approach, described as the “blue ocean strategy”, is an important strategy that should be learned for businesses to move beyond the classical market patterns. Therefore, the purpose of this study is to understand and learn the blue ocean strategy. In the study, the blue ocean strategy, which offers users a way to create undisputed market space and directs opinions to create innovative value and demand from the existing competition, is theoretically discussed, and what tools should be used by businesses to create blue oceans and what are the principles to follow. In addition, the examples of global companies that have succeeded in creating blue ocean are examined with the "Hand-Reduce-Increase-Create Table", trying to contribute to both the literature and business managers who want to implement the blue ocean strategy.