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Blue Ocean versus Competitive Strategy: Theory and Evidence

Author

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  • Burke, A.E.
  • van Stel, A.J.
  • Thurik, A.R.

Abstract

Blue ocean strategy seeks to turn strategic management on its head by replacing ‘competitive advantage’ with ‘value innovation’ as the primary goal where firms must create consumer demand and exploit untapped markets. Empirical analysis has been focused on case study evidence and so lacks generality to resolve the debate. We provide a methodological synthesis of the theories enabling us to bring statistical evidence to the debate. Our analysis finds that blue ocean and competitive strategies overlap and managers do not face a discrete either/or decision between each strategy. Our evidence for the Dutch retail industry indicates that blue ocean strategy has prevailed as a dominant long term viable strategy.

Suggested Citation

  • Burke, A.E. & van Stel, A.J. & Thurik, A.R., 2009. "Blue Ocean versus Competitive Strategy: Theory and Evidence," ERIM Report Series Research in Management ERS-2009-030-ORG, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    • Handle: RePEc:ems:eureri:16037
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    References listed on IDEAS

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    Cited by:

    1. Papazov Emil & Mihaylova Lyudmila, 2016. "Using Key “Blue Ocean” Tools for Strategy Rethinking of a SME: A Case from the Bulgarian Knitwear Industry," Economics and Business, Sciendo, vol. 29(1), pages 104-110, August.
    2. Dag Øivind Madsen & Kåre Slåtten, 2019. "Examining the Emergence and Evolution of Blue Ocean Strategy through the Lens of Management Fashion Theory," Social Sciences, MDPI, vol. 8(1), pages 1-23, January.

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    More about this item

    Keywords

    blue ocean strategy; competitive advantage; entrepreneurial discovery; innovation; retailing;
    All these keywords.

    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • M - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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