Diving into Success: Applying the Blue Ocean Theory in Strategy Management at Oman Air

In this document we will discuss about Applying the Blue Ocean Theory in Strategy Management at Oman Air and below are the summary points of this document:- Strategy management is crucial for achieving organizational success and involves developing and implementing goals and initiatives. The Blue Ocean Theory is a strategy management technique focused on entering new markets with low costs to create new demand. The report evaluates and applies the Blue Ocean Theory to Oman Air, highlighting its methodology and emphasis on innovation and finding new market opportunities.

Running head: STRATEGY MANAGEMENT
Strategy Management
Name of the Student
Name of the University
Author’s Note

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Table of Contents
Introduction................................................................................................................................2
Theory of Blue Ocean................................................................................................................2
Company Background of Oman Air..........................................................................................3
Application of Blue Ocean Theory to Strategy..........................................................................4
Future Strategy Evaluation.........................................................................................................6
Aspect Prior to and After Studying Blue Ocean Theory............................................................6
Conclusion..................................................................................................................................7
References..................................................................................................................................8

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Introduction
In the world of today’s business, Strategy Management is considered as a major mean
for achieving the organizational success. In the business organizations, strategy management
is considered as the process to develop as well as implementation of the organizational goals
along with the initiatives that are helpful in achieving these goals and targets (Ansoff et al.
2019). The presence of different kinds of strategy management techniques can be seen
adopted by the companies and the Blue Ocean Theory can be considered as one of them. As
per the content of blue ocean theory, it is a simultaneous chase for the companies for entering
into a new market in the presence of low cost and the aim is to create new demand (Kim and
Mauborgne 2014). The aim of this report is the evaluation and application of blue ocean
theory in respect of one major company of Oman that is Oman Airlines.
Theory of Blue Ocean
According to the blue ocean theory, blue ocean strategy can be considered as the
process to develop business strategies for the companies. This particular theory is based on
the idea that it is possible for the companies to achieve higher profit with the creation of new
demand in the non-competitive market. This profit is easier to gain than the rivalry among the
existing markets (Bourletidis 2014). The method of blue ocean strategy includes a specific
methodology to create the value innovation along with the development and use of new
marketplace for demand. This whole procedure puts major emphasis on the ability of the
companies for creating independent market in order to exclude the competition from their
business. The blue ocean theory strongly relies on the innovative and creative apaches of the
businesses with the aim to search for new markets and opportunities. Under the blue ocean
theory, the description of both conceptual and practical tools can be seen for the companies

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so that they can carry out systematic search for the new market opportunities and non-
competitive markets (Bourletidis 2014).
In this context, it needs to be mentioned that there are certain features of the blue
ocean strategy. The main characteristics of blue ocean strategy are shown below:
 The adoption of blue ocean strategy helps in creating the uncontested or competition
free market place for the companies (Alhaddi 2014)
 The use of blue ocean strategy assists the companies in making the competition
inappropriate
 This blue ocean strategy helps in creating as well as capturing new demand in the
market for the companies (Alhaddi 2014)
 Companies can break the value-cost trade off by adopting blue ocean strategy
 By adopting the blue ocean, business organizations can line up the whole system of
the activities of the firms in chasing differentiation and low cost.
In this context, it needs to be mentioned that the application of the blue ocean strategy can
be done across business sectors or businesses as there is not any limitation of this strategy to
any single business or sector (Low and Ang 2013). Hence, it can be said that the companies
can avail major business opportunities from the application of blue ocean strategy.
Company Background of Oman Air
Oman Air is considered as one of the major airline companies of Oman as it is the
flagship carrier of the Sultanate of Oman and an official 4 Star Airline company. The
company was established in the year of 1993. It needs to be mentioned that Oman Air plays a
crucial role in connecting the whole world with Middle East by supporting the sectors of
commercial, industrial and tourism. This report aims at the application of different

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components of blue ocean strategy in the business operation of Oman Air (omanair.com
2019).
Application of Blue Ocean Theory to Strategy
It can be seen from the earlier discussion that the business organizations can gain
major advantages with the adoption of the blue ocean strategy; and there is not any exception
of this aspect in case of Oman Air as the airline company has the scope to apply the aspects
of this strategy for their business development. As per the blue ocean theory, the application
of the blue ocean strategies can be done with the assistance of certain analytical tools and
framework as these aspects help in the formulation and execution of the blue ocean strategic
move (Chandrakala and Devaru 2013). One of these blue ocean strategic tools or frameworks
is the Six Paths Framework. The application of this specific framework of blue ocean strategy
helps the managements of the companies in the successful identification of risks in the
business areas. The presence of six aspects can be seen under this strategy; they are Industry,
Buyer Group, Scope of Product or Service Offering, Functional-emotional Orientation and
Time (Chandrakala and Devaru 2013). The following discussion shows the application of
blue ocean theory to the strategies of Oman Air.
Industry: In order to increase the profit and to create demand, the need for Oman Air is to
look across the alternative industries. For this, Oman Air must consider the substitute
products or services that are different with the same functionality and utility. In addition, the
company needs to look for alternative products that have different fiction but same purpose
(Kabukin 2014).
Strategic Group: After that, Oman Air needs to look across the strategic groups within the
same industry that chase the same strategy. In this process, Oman Air needs to ascertain the
reasons behind the buyer’s trade up for higher group and trade down for lower group.

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Buyer Group: In order to achieve higher profitability, Oman Air needs to look across the
buyer group apart from the main target buyers as they are directly or indirectly connected
with the buying decision; such as influencers having roles in the buying decision, regulator,
and purchasers paying for the products and services and others. As per the blue ocean
strategy, companies become able to increase their sales and profitability by focusing on these
buyers (Oliveira and Fleury 2015).
Scope of Product or Service Offering: As per the blue ocean strategy, Oman Air needs to
consider what happens before, during and after the use of their services by the consumers.
With the identification of this aspect, the company will be able in identifying the constraints
of the customers so that these can be eliminated by proving them with complementary
products and services.
Functional-emotional Orientation: The blue ocean strategy will assist Oman Air to consider
the emotional and functional utility that their consumers receive from the consumption of
their products and services. The identification of these aspects by the company will help them
either in competing on emotional aspect by eliminating the functional elements and vice
versa (Aithal and Kumar 2015).
Time: With the adoption of blue ocean strategy, Oman Air will be able in gaining the needed
insight into the process of changing the business trends that affects the value of the customers
and impact the business model of their company.
Thus, as per the above six paths of blue ocean theory of Six Paths Framework, Oman
air can develop new perspective for their business. More specifically, Oman Air will start
breaking their existing business assumptions for the development of new perspectives about
their business and industry; and it is majorly helpful in creating new market and new demand
in the absence of any competition.

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Future Strategy Evaluation
It can be seen from the above discussion that the adoption of blue ocean strategy helps
the companies in gaining new perspective about their business and industry so that they can
develop new strategies for their businesses (Roth 2014). In case of Oman Air, the
management of the company needs to evaluate and develop certain strategies for their
business. The first strategy for Oman Air will be to enter into new alternative industry by
developing new substitute or alternative products. It will allow the company in capturing the
untapped business opportunities in a new market. The next strategy for Oman Air will be to
enter into business strategies with the strategies groups for gaining more business
opportunities in future (Kanagal 2015). After that, apart from the target buyers, Oman Air
needs to target the other direct or indirect buyers a sit will increase their consumer base along
with enhancing the revenue position. The next strategy will be to identify the constraints of
the customers with the aim to provide them with the appropriate products or service offering.
After that, the next strategy for Oman Air will be to determine the adoption of new emotional
or functional apparel (Darwin 2013). These are the future strategies of Oman Air as per blue
ocean strategy.
Aspect Prior to and After Studying Blue Ocean Theory
Before studying the blue ocean strategy, the focus was limited within the industry
rivalry for growing business. In addition, the focus was within the strategic group for gaining
the competitive position. Before studying the blue ocean strategy, it was considered that the
companies are only needed to focus on the target customers for the maximization of revenue
and profitability. It was also the concept that the companies are needed to adopt the external
trends for their business success.
However, the study of blue ocean strategy has changed the view as it shows that the
companies are needed to look across the industries for gaining more business opportunities

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and customers (Lee, Wang and Chung 2017). After that, the blue ocean strategy shows that
the companies must look across the strategic groups outside the industries for tapping the
business opportunities. Most importantly, the blue ocean strategy also shows the importance
of targeting other direct and indirect customer apart from the target customers. On the overall
basis, the blue ocean strategy helps in identifying the differentiation and low cost business
opportunities in order to gain new market space that does not have any competitors (Singh
2014).
Conclusion
It can be seen from the above discussion that the business organizations can become
majorly beneficial from the adoption of blue ocean strategy as it provides them with the new
business opportunities in the new business space and in the absence of exiting competitors.
The above discussion also states that the business organizations can use different tools and
frameworks of blue ocean strategy for the adoption of these strategies for their business
operations. Under the Six Paths Framework of blue ocean strategy, Oman Air will be needed
to consider changing their business strategies and perspectives through six specific paths or
ways as these will provide the company with strategies for future business development. The
adoption of blue ocean strategy changes the aspect as it shows the presence of new business
opportunities in new market and business sectors.

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References
Aithal, P.S. and Kumar, P.M., 2015. Black Ocean Strategy-A Probe into a new type of
Strategy used for Organizational Success. GE-International Journal of Management
Research (GE-IJMR), 3(8), pp.45-65.
Alhaddi, H., 2014. Blue ocean strategy and sustainability for strategic
management. International Proceedings of Economics Development and Research, 82, p.125.
Ansoff, H.I., Kipley, D., Lewis, A.O., Helm-Stevens, R. and Ansoff, R., 2019. Implanting
strategic management. Springer.
Bourletidis, D., 2014. The strategic model of innovation clusters: Implementation of blue
ocean strategy in a typical Greek region. Procedia-Social and Behavioral Sciences, 148,
pp.645-652.
Chandrakala, V.G. and Devaru, S.D.B., 2013. Blue ocean strategy and bottom of the pyramid
marketing. International Journal of Management Research and Reviews, 3(7), p.3080.
Darwin, C., 2013. Comparing Flowing Stream Strategy and Blue Ocean Strategy.
Kabukin, D., 2014. Reviewing the Blue Ocean Strategy. Is the Blue Ocean Strategy valid and
reliable? (Master's thesis, University of Twente).
Kanagal, N.B., 2015. Innovation and product innovation in marketing strategy. Journal of
Management and marketing research, 18, pp.1-25.
Kim, W.C. and Mauborgne, R., 2014. Blue ocean strategy, expanded edition: How to create
uncontested market space and make the competition irrelevant. Harvard business review
Press.

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Lee, Y.L., Wang, W.S. and Chung, S.M., 2017, May. The Blue Ocean Strategy applied in a
flood control product development. In 2017 International Conference on Applied System
Innovation (ICASI) (pp. 1961-1964). IEEE.
Low, K.C.P. and Ang, S.L., 2013. Blue Ocean Strategy and CSR. Encyclopedia of Corporate
Social Responsibility, pp.179-188.
Oliveira, M.G. and Fleury, A.L., 2015, August. A framework for improving the roadmapping
performance. In 2015 Portland International Conference on Management of Engineering
and Technology (PICMET) (pp. 2255-2263). IEEE.
Omanair.com. 2019. [online] Available at: https://www.omanair.com/en/about-us/corporate-
information/oman-air-profile [Accessed 4 Mar. 2019].
Roth, S., 2014. Booties, bounties, business models: a map to the next red
oceans. International Journal of Entrepreneurship and Small Business, 22(4), pp.439-448.
Singh, A., 2014. Blue Ocean Strategy: The Magic and Science of New Value Innovation
Blockbusters. Global Journal of Finance and Management, 6(8), pp.745-748.