Marketing Report: Blue Ocean Strategy Implications for Businesses

This report delves into the Blue Ocean Marketing Strategy, examining its implications for businesses, with a specific focus on the Turkish market context. The research begins by evaluating existing literature, highlighting the strategy's significance in developing untapped and uncontested markets. It describes the frameworks proposed by Kim and Mauborgne, crucial for identifying and developing suitable market criteria. The report further identifies the implications of the Blue Ocean Strategy in various contexts, detailing how organizations can leverage innovation and value generation to enhance their revenue margins. The study includes an abstract in both English and Turkish, a table of contents, and sections covering the introduction, literature review, discussion, implications, and recommendations. The literature review explores the Blue Ocean Strategy, its principles, value innovation, strategy canvas, and the four-action framework. It also examines successful implementation strategies, theoretical frameworks, and risk management. The discussion section analyzes the literature and its implications, followed by recommendations and references, providing a comprehensive overview of the strategy's applications and benefits for businesses.

Running head: MARKETING
Marketing
Name of the student
Name of the university
Author note

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BLUE OCEAN MARKETING STRATEGY AND ITS IMPLICATIONS FOR
BUSINESSES
ABSTRACT
The report examined the implication of blue ocean marketing strategy on businesses
in the global context by keeping focus on the Turkish perspective. The research has
critically evaluated past literature which shows that blue ocean marketing is critical
for developing a new market which is untapped and uncontested. The research
described the different framework suggested by Kim and Mauborgne essential for
companies to identify and develop suitable market criteria. It has also identified the
implication of blue ocean strategy in different context and the way organisations can
use different strategies to increase their revenue margin by using innovation and
value generation.

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MAVİ OKCEAN PAZARLAMA STRATEJİSİ VE İŞLETMELER İÇİN
UYGULAMALARI
ÖZET
Rapor, mavi okyanus pazarlaması stratejisinin küresel bağlamda işletmeler
üzerindeki etkisini, Türkiye perspektifine odaklanarak incelemiştir. Araştırma, mavi
okyanus pazarlamasının henüz keşfedilmemiş ve tartışmasız yeni bir pazar
geliştirmek için kritik olduğunu gösteren eski literatürü eleştirel bir biçimde
değerlendirdi. Araştırma, Kim ve Mauborgne tarafından önerilen ve şirketlerin uygun
pazar kriterlerini belirlemesi ve geliştirmesi için gerekli olan farklı çerçeveyi tanımladı.
Ayrıca, mavi okyanus stratejisinin farklı bağlamdaki anlamını ve kuruluşların
inovasyon ve değer yaratmayı kullanarak gelir marjlarını arttırmak için farklı stratejiler
kullanabilmelerini tanımlamıştır.

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Table of Contents
1.0 Introduction.............................................................................................................5
1.1 Introduction.........................................................................................................5
1.2 background to the study......................................................................................5
1.3 statement of problem..........................................................................................7
1.4 purpose of the study...........................................................................................7
2.0 Literature review.....................................................................................................7
2.1 Introduction.........................................................................................................7
2.1 Blue ocean strategy............................................................................................8
2.2 Blue ocean vs red ocean strategy....................................................................10
2.3 Six principles of blue ocean strategy................................................................11
2.4 Value innovation...............................................................................................12
2.5 Strategy Canvas...............................................................................................14
2.6 four action framework.......................................................................................15
2.7 Successful implementation of Blue Ocean strategy.........................................15
2.8 Theoretical framework......................................................................................17
2.9 Summary...........................................................................................................23
3.0 Discussion and implication...................................................................................23
3.1 Discussion of literature and implications..........................................................23
4.0 Recommendation.................................................................................................25
5.0 References...........................................................................................................27

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1.0 INTRODUCTION
1.1 INTRODUCTION
This report examines the role of blue ocean strategy in the modern business
environment and the way it provides sustainability to the organizations. The global
business market has become highly competitive in nature and management in global
organization are forced to make changes to their strategy to manage their
sustainable in global conditions. The past decade has witnessed the development of
significant frameworks for developing the business model. Kim and Mauborgne
(2004) introduced a new business model named Blue Ocean Strategy which gained
acceptance and popularity rapidly. This concept has been widely used by various
companies all over the world but making the competition irrelevant is comparatively
bold statement in cases of economic crisis and in specific markets. Blue ocean
strategy has helped firms in developing effective innovation strategy and incorporate
them into their business model for gaining sustainable profit. Blue Ocean marketing
strategy facilitates the business organizations in developing an uncontested market
by changing the current competition concentration to an innovative demand and
value competition differentiated from the red ocean strategy. Moreover, as the profit
pool is shrinking to due to the increase in the large number of companies present in
the market it is necessary to develop uncontested market which is one of the major
aspects of the blue ocean strategy.
Blue Ocean strategy has defined the uncontested market as an environment
where the products are not defined properly, market is not known and the
competitors are unstructured. The companies focusing of innovative and developing
value innovations are able to gain the competition in the market by developing
uncontested market. This is achieved by balancing the economic cost with the
needs of the consumers by reconfiguring the offerings. This results in the
development of a new value proposition.
1.2 BACKGROUND TO THE STUDY
In the past two decades, the business and market has changed drastically
due to the development of new theories and strategies such as Chaos theory and
Blue Ocean which offer diverse viewpoints addressing this issue of gaining

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sustainable competitive advantage in the market1. Chaos theory deals with the
irregularity and complexity of strategic decisions in an environment which is dynamic
in nature. Various authors suggested incorporation of both the theories to develop a
model which is able to readily adapt to the future possibilities. Chan and
Maubourgne (2005) developed Blue Ocean strategy by evaluating 30 different
sectors and 150 strategic actions with a century of data. However, blue ocean
strategy cannot be considered as a new concept and has been used in business
administration for a considerable amount of time2. This strategy provides a practical
roadmap and theoretical framework for organisations to prevent rivalries by
developing market niche which facilitates in market growth. Globalisation has made
changes in the market need and demand quite rapid and companies need to be
innovative to cope with these changes. This has made blue ocean strategy as one of
the most significant concepts in the past decade.
Capitalism and industries in various countries have boomed in the past
decade has made many countries grow significantly where the implementation of the
free market economy has become one key elements of driving this change.
However, there are many where the gap between the poor and the rich have
increased which led to the disappearance of middle-class segments and polarization
of the classes3. This shows that in majority of the growing economy, the emerging
capitalist have increased in numbers. This shows that companies have new
opportunities of addressing to the needs of these set of consumers having increased
disposable income in the market. These situations have enhanced the importance of
sustainable development of businesses as it is critical to develop competitive
advantage by creating effective strategies through innovative processes to create
sustainable competitive advantages.
However, in this high level of competition in the market, majority of the
companies are facing issues in maintaining a blue market due to the ability of all the
rival companies to replicate each other’s products. This means that even a blue
ocean turns into a red after a certain period of time due to the intensity of the
1 Ercetin, S.S., Ray, N. and Sen, S., 2019. Economic Growth and Demographic Transition in Third
World Nations: A Chaos and Complexity Theory Perspective.
2 Aspara, J., Hietanen, J. and Tikkanen, H., 2010. Business model innovation vs replication: financial
performance implications of strategic emphases. Journal of Strategic Marketing, 18(1), pp.39-56.
3 Chan Kim, W. and Mauborgne, R., 2005. Value innovation: a leap into the blue ocean. Journal of
business strategy, 26(4), pp.22-28.

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competition in the market. Various companies have shown that it is possible to
develop a blue ocean even after it has been turned intro red. The economy of Turkey
is at its lowest point at its past decade and there has been significant influence on
the operations of the companies in the market.
1.3 STATEMENT OF PROBLEM
The economy of Turkey is in turmoil and is affected by the increase in inflation
and unemployment4. Even though, Turkey is one of the most developed countries in
the world, the business organisations are affected heavily due to the change in the
disposable income of the population which has reduces the sales volumes in various
sectors. Blue ocean strategy is one of the most suitable of addressing crisis
situations for organisations by developing superior policies and processes that
guarantees sustainable competitive advantage. However, still is rapid growth and
investment in the country and being a developing nation, the companies are faced
with multiple challenges while operating with the irregularities in the market. The
research examines the different types of blue oceans and explore the topic to
increase the awareness of the companies working in Turkey.
1.4 PURPOSE OF THE STUDY
The purpose of the study is to research the existing theories on blue ocean
marketing to evaluate options that can be used by the organizations in the country to
improve the process and policies and develop an uncontested market for
themselves. The research will evaluate the successful attempts made by past
companies to determine the key factors that have led to the success of the
organizations in the past and how it can be used in this present context. However,
this would be comparatively difficult in the present as the economy is still recovering.
This research will highlight this aspect of the economy to understand the way the
companies both large and small can use blue ocean marketing to gain competitive
advantage in the market.
2.0 LITERATURE REVIEW
2.1 INTRODUCTION
This section of the research deals with the detailed analysis of blue ocean
strategies, concept, principles and other examples essential for providing a detail
4 Shinnar, R.S. and Zamantılı Nayır, D., 2019. Immigrant Entrepreneurship in an Emerging Economy:
The Case of Turkey. Journal of Small Business Management, 57(2), pp.559-575.

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analysis on the research topic. The blue ocean strategy is a relatively new strategy
which evaluates the market boundaries to create a new market or an uncontested
market. The majority of the developed countries have become highly saturated due
to the presence of large number of global companies and these companies are not
able to maintain a competitive advantage for a longer time frame5. This can be
understood by the example of the retail industry in United Kingdom which consists of
all the big global industry giants which has made the companies focus on improving
the short-term sales volumes. These organizations develop innovative product
strategies that last for shorter period of time which results in temporary competitive
advantage. Capitalism and industries in various countries have boomed in the past
decade has made many countries grow significantly where the implementation of the
free market economy has become one key elements of driving this change. Blue
Ocean strategy can be a means for all the companies to develop effective strategies
to create a market which is uncontested by developing the target segment or
disruptive innovation6. Even though, disruptive innovation and blue ocean strategies
go hand in hand, they are different from each other as blue ocean does not only
mean innovation in developing new technologies but also innovative approaches and
methods to improve the overall efficiency of operation. However, there are many
where the gap between the poor and the rich have increased which led to the
disappearance of middle-class segments and polarization of the classes. This shows
that in majority of the growing economy, the emerging capitalist have increased in
numbers.
2.1 BLUE OCEAN STRATEGY
Blue ocean strategy has been defined as one of the tools of strategic
management developed in the twenty first century. This strategy aims at developing
frameworks which are directed as discovering new value propositions and
businesses. The strategy emphasises on the fact that are key to sustainable
competitive advantage is developing uncontested market and not by competing in
the existing market. Blue ocean strategy develops market that have high demand,
opportunity and no competition7. This framework moves towards achieving
5 Yang, J.T., 2012. Identifying the attributes of blue ocean strategies in hospitality. International
Journal of Contemporary Hospitality Management, 24(5), pp.701-720.
6 Yang, J.T., 2012. Identifying the attributes of blue ocean strategies in hospitality. International
Journal of Contemporary Hospitality Management, 24(5), pp.701-720.
7 Jeon, S., Park, S.R. and Digman, L.A., 2008. Strategic implications of the open-market paradigm
under digital convergence: the case of small business C2C. Service Business, 2(4), pp.321-334.

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differentiated strategy and low-cost positions. This implies that blue ocean strategy
makes effort in aligning innovation with price, utility and cost positions which results
in achieving lower cost along with product or service differentiation.
Blue ocean strategy enables companies to accomplish their objectives by
implementing specific strategies. The consumers receive value for money for all the
products offered to them. If we compare the blue ocean strategy to the red ocean
strategy, it can be seen that the blue ocean strategy nullifies the relevancy of the
competition. Simultaneously it also makes sure that differentiated low cost is
achieved. Blue ocean strategy is named as such as companies fight over the same
thing to develop a bloody market and eliminating all the competition results in
generation of blue ocean which does not consists of the major sharks preying for the
same thing. Extreme competition in the market due to the advent of globalisation has
affected global markets. This has resulted in the adoption of strategies which are
able to create a differentiated market for the organizations in the country8.
Organizations aim to penetrate in markets where there is no competition or the
needs of the consumers have not been addressed by the other companies in the
market. This results in rapid growth and profitability of the organizations. A different
definition of blue ocean strategy states that it aims to satisfy the consumers by
developing products and services in a market which is private and free from
competition by developing innovative services and goods. Firms using strategy does
not compare themselves with other organizations in the market but aim to make sure
that there is differentiation among the products and how they can be used to gain
competitive advantage through value innovation. These organizations compete in
smaller market and aim to reduce the operating cost to achieve diversification in the
market. This companies aim to be different rather than directly competition in e a
pool consisting of large number of companies in the market. Blue ocean strategy
embraces the approach where the organizations competition in red oceans are
considered to be weak when compared to the companies have their own niche
market to cater to. The companies operating in red oceans become weak as they
are trying to grab each other share in the market and pursue the consumers of the
competitors to become loyal consumers. These types of consumers have high
8 Kim, W.C., 2005. Blue ocean strategy: from theory to practice. California management review, 47(3),
pp.105-121.

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purchasing power of the organizations which results in significant decrease in the
profit margin and causes a stagnancy in the growth of the business entities.
2.2 BLUE OCEAN VS RED OCEAN STRATEGY
Red ocean are the companies suffering from crowded market space where
there is significant increase in the number of competition and it increases the overall
price competition by reducing the differentiation of the products. On the contrary,
blue ocean is free of any type of competition as the market is exclusive to the
organization as other organizations has not been able to identify or cater to the
needs of these niche consumer segments9. These markets provide greater
possibility to the companies to succeed by increasing their profit margin by
developing new demand and changing the basis and nature of the competition. The
knowledge about the needs and the wants that has not been addressed by the
companies is the main focal point of blue ocean strategy where the companies are
focused on making changes by evaluating the characteristics of the consumers and
develop products and marketing strategies to address this particular need10. It can be
considered as constant pattern of developing strategies that results in the
development of a new market where the demand is generated and there is no
relevancy of competition to it. Therefore, blue ocean strategy act as a guideline for
escaping from the intense competition in a market consisting of limited consumers by
generating an untapped market.
Red ocean marketing strategy Blue ocean marketing strategy
Competition in the market space that is
existing in nature.
Developing and retaining a market that
is new and uncontested.
Exploitation of the existing demand in
the market
Create and grab the new demand
generated in the market.
Compete with the large of companies
and defeat them
There is no significance of competition
in such markets.
It is essential to make the trade-off
between value and cost
It is absolutely necessary to break the
trade off between value and cost.
9 Roth, S., Melkonyan, A., Kaivo-Oja, J., Manke, B. and Dana, L.P., 2018. Interfunctional business
models: map grid for an uncharted quadrant of the blue ocean. International Journal of
Entrepreneurial Venturing, 10(5), pp.581-595.
10 Chan Kim, W. and Mauborgne, R., 2005. Value innovation: a leap into the blue ocean. Journal of
business strategy, 26(4), pp.22-28.

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The overall business system needs to
be aligned with the strategic choice of
reducing cost or differentiation
The overall business system needs to
be aligned with the activities aimed at
achieving both differentiation and low
cost.
Table 1
Source: Chan Kim and Mauborgne (2005)
2.3 SIX PRINCIPLES OF BLUE OCEAN STRATEGY
Blue ocean strategy has developed and highlighted six major principles which
should be used by the companies pursuing to develop a differentiated uncontested
market which facilitates customer creation and enhances the market share11. These
six principles are divided into two parts, formulation strategies and execution
strategies. The first four strategies are used for developing effective blue ocean
strategy for developing an uncontested market. These principles have been
described below in detail:
 This principle deals with the reconstructing of the market boundaries through
searching for various alternative products, markets, strategic groups,
functional appeal of the consumers and complementary products of the rival
business entities. However, this phase is associated with search risk.
 The next principle deals with developing focus on the overall picture and not
the number by including the four steps of visualisation strategy which includes
visual exploration, visual awakening, visual communication and visual
strategy fair12. This principle may lead to0 scale and planning risk for the
organization.
 The next principle is going beyond the existing demand in the market by
retention of existing consumers and tapping into the tiers of non-customers.
This factor results in the development of business model risk if not executed
properly. The tiers in this case refer to three tiers where the first tier consists
of ones that are recently going to be non-customers being on the edge of the
11 Chan Kim, W. and Mauborgne, R., 2005. Value innovation: a leap into the blue ocean. Journal of
business strategy, 26(4), pp.22-28.
12 Kim, S., In, H.P., Baik, J., Kazman, R. and Han, K., 2008. VIRE: Sailing a blue ocean with value-
innovative requirements. IEEE software, 25(1), pp.80-87.

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market segment, the second tier consists of non-consumers that are refusing
and are consciously choosing against the market generated by the firm and
finally, the third set of non-consumers consist of the consumers that are far
away from the consumers in the current market and distantly situated in a
different market.
 The next principle is to follow the strategic sequencing perfectly and
developing a business model to ensure that there is generation of high level of
profit margin in the blue ocean market.
 The remaining two principle starting from this principle belong to execution
principles which will facilitate in overcoming key organizational hurdles. This
starts with dealing with the motivational hurdle of the staffs that are
unmotivated, political hurdles, cognitive hurdles that affect the dynamic
leadership and the resource hurdle. This hurdles if not overcome properly put
the whole organization in risk
 The final principle is developing execution into the strategy formulated. The
first step is removing all the possible roadblocks that may lead to harm of the
strategy developed by being involved in the most fundamental sets of
operations such as behaviour and attitude of the workforce within the
organization. The next step is developing a culture which is full of commitment
and trust so that the workforce is motivated in following the developed
strategy in spirits. Finally, the firms should reach a fair process in
development and execution of the strategy beyond the aspect of persuasion.
2.4 VALUE INNOVATION
Value innovation can be considered as the cornerstone of blue ocean
marketing strategy. The markets are considered as a precise space where the
companies have been trying to grab the attention of more consumers to reach target
consumer segments to increase their returns and this action is not feasible unless
the firms are able to derive positive return from the market and it results in the
dissolution of the company from the market13. Market competition is one of the most
significant aspect for all firms but it is essential to develop more attention to the
issues as it keeps the firms away from the attribute of generating a new market
which results in the development of a new market segment and causes meaningless
13 Chan Kim, W. and Mauborgne, R., 2005. Value innovation: a leap into the blue ocean. Journal of
business strategy, 26(4), pp.22-28

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rivalry and competition between the organizations. This is the essence of using blue
ocean marketing strategy. Blue ocean strategy has been considered as various
experts as dynamic process rather than being a static process. Firms developing
competitive advantage will find that other imitators will follow in the market but a
strong blue ocean strategy is difficult to imitate or emulate. Firms strategy and action
are factors affecting or influencing the value proposition or cost structure and value
innovation. This means that firms generating the maximum value innovation are
hard to imitate and prevents other imitators into entering the generated blue market.
Kim and Mauborgne (2005) stated in their research at all times that firms that are
seeking to develop an innovative market are able to make sure that they do not
benchmark themselves against competition in the market. on the contrary, these
firms focus on using value innovation which aims at developing a better value for the
company and the buyers by opening up new and uncontested market space14. It is
possible for the value innovation to occur at any range of activities with the
organizational processes such as product, service, cost, pricing, delivery and the
business model. On the other hand, they also consider that value and innovation are
not separable and value innovation provides equal weightage to innovation and
value. Value without the development of innovation trends has resulted to generate
value incremental in nature is not sufficient to the sustain in the market place 15. On
the contrary, use of innovation without any emphasis on the development of value
leads to creation of services and products functionalities that surpass what the
buyers are ready to pay for and accept. This results in the development of products
where the consumers are not prepared to pay such high prices and there is lack of
need of such products in a market. Therefore, value innovation can be considered
as one of the newest approaches of execution and though that completely defies the
strategy based on competition.
14 Chan Kim, W. and Mauborgne, R., 2005. Value innovation: a leap into the blue ocean. Journal of
business strategy, 26(4), pp.22-28
15 Chan Kim, W. and Mauborgne, R., 2005. Value innovation: a leap into the blue ocean. Journal of
business strategy, 26(4), pp.22-28

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Figure 1
Source: Chan Kim and Mauborgne (2005)
2.5 STRATEGY CANVAS
Strategy canvas is one of the most simple and effective tools of visualisation
which is used as a part of the overall strategic process. Strategy canvas is a line
graph which plots the importance of a company and factors and then overlays the
benchmark in the market. This strategy leads to the development of a new
competitive strategy. This strategy facilitates in identifying the loopholes and
deficiencies so that the organisations can raise their bar and develop a
differentiated16. The below plot shows a strategic canvas of the overall airline
industry and the Southwest airlines. The graph clearly shows that the company has
eliminated the majority of the factors or functions which has been considered as
important. This has been achieved by creating a differentiated strategy by cutting out
the majority of the benchmarked factors. This has facilitated them in reducing the
overall cost to a greater extent which in turn resulted in the decrease in the price for
the consumers. Therefore, if the company is able to provide service as per their
strategy then the consumers aware of the services that they receive specifically.
16 Chan Kim, W. and Mauborgne, R., 2005. Value innovation: a leap into the blue ocean. Journal of
business strategy, 26(4), pp.22-28

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Figure 2
Source: Chan Kim and Mauborgne (2005)
2.6 FOUR ACTION FRAMEWORK
The four-action framework is used to develop a new value curve by
considering four crucial factors which are reduce, eliminate, create and raise.
Therefore, the first component which are elements which needs to eliminated or
disposed. The next factor is choosing the factors or elements needs to reduced
significantly due to the minimal significance, the third factor is choosing the elements
which needs to be enhanced by the company and finally the elements which needs
to be generated by the company17. The example of Casella Wines which is one of
the major wine companies in Australia has used this framework to identify a new
market by acknowledging the fun searchers of wine. The resulted in the development
of Yellow tail which grew rapidly in the United states which made the company the
most rapid growing company in the wine industry.
2.7 SUCCESSFUL IMPLEMENTATION OF BLUE OCEAN STRATEGY
Cirque du Soleil is one of the primary companies that implemented blue
ocean strategy into their business model. The success of the company was due to
the reinvention of their business model which enabled the company to generate
more revenue than the counterparts in the industry. As stated by kim and
Mauborgne,
17 Yang, C.C. and Yang, K.J., 2011. An integrated model of value creation based on the refined
Kano's model and the blue ocean strategy. Total Quality Management & Business Excellence, 22(9),
pp.925-940.

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“Cirque did not make its money by competing within the confines of the
existing industry or by stealing customers from Ringling and the others. Instead, it
created uncontested market space that made the competition irrelevant. It pulled in a
whole new group of customers who were traditionally noncustomers of the industry
— adults and corporate clients who had turned to theater, opera or ballet and were,
therefore, prepared to pay several times more than the price of a conventional circus
ticket for an unprecedented entertainment experience.”18
The founders of the circus initially focused on reducing the value less or
elements with low value for the consumers but had high value. The use of trained
animals and costly ring methods were the two most critical elements that had bare
minimum value for the consumers. Instead, the consumers were provided with
sophisticated theatrical having unique characters and storyline. This facilitated in
generating a new genre by the company which is neither a circus nor a theatre so
there were no rivals that could effectively compete with this new model.
The case of Nintendo is different from the previous one and Wii was
developed by Nintendo in the year of 2006 and is a video game console played at
home. It competed with the PlayStation 3 by Sony and Xbox 360 by Microsoft. The
controller had unique features which resulted in appeal to wider segment of
consumers in market than all other market competitors and become the highest in
terms of sales in the year of 201219. The company has been in the market for
decades and it was not at all easy to predict the rise of the company in the market
and it became the mots innovative company in the year of 2008. Nintendo was able
to enter into the market of Google and Apple by tapping into the market of the
potential casual gamers those who does not consider it as a hobby or interest.
Initially, consoles and games were developed only for the gamers that are hardcore
and spend a majority of their time on it. The redesign of the gaming console and
simplified gaming process made the games fun and the company was able to gather
a totally new segment of consumers who were the casual gamers and wanted to
experience the enjoyment of playing with their families. This includes players from all
demographics regardless of their age and gender. However, the organisation had
18 Chan Kim, W. and Mauborgne, R., 2005. Value innovation: a leap into the blue ocean. Journal of
business strategy, 26(4), pp.22-28
19 Chan Kim, W. and Mauborgne, R., 2005. Value innovation: a leap into the blue ocean. Journal of
business strategy, 26(4), pp.22-28

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been able to generate a blue ocean for themselves it diminished with the
advancement of technology and they lost their top spot in the market and it is
essential for the organization to develop another blue ocean in order to facilitate their
growth in a new market segment.
Figure 3
Source: Chan Kim and Mauborgne (2005)
2.8 THEORETICAL FRAMEWORK
The author states that use of blue ocean marketing strategy based on the
market development strategy has brought about a new perspective into the market
which has redefined the market competition by representing as an alternative to the
simple market models. The difference between the market making and redefining of
the market can be understood by the difference between the first movers and second
movers where the second movers review the movements of the first movers and
analyses the changes in the customer statistics and conception logic20. This means
that blue ocean marketing strategy has been able to redefine competition in the
market by developing new business models, by generating new market space and
20 Chan Kim, W. and Mauborgne, R., 2005. Value innovation: a leap into the blue ocean. Journal of
business strategy, 26(4), pp.22-28

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improvement enabling the use of new market space by using scientific improvements
through logic earnings than the classical models of business strategy.
The central theme of Blue Ocean Strategy should be envisioned clearly
through an examination facilitated by Howard County High School under studies in
Maryland. Nicholas Benavides, an understudy at Howard County High, was familiar
with Blue Ocean Strategy by his father and was motivated with the achievement of
the organizations alluded to in the book, and empowered it to push him to instruct
various understudies about Blue Ocean showcasing Strategy. In the past two
decades, the business and market has changed drastically due to the development
of new theories and strategies such as Chaos theory and Blue Ocean which offer
diverse viewpoints addressing this issue of gaining sustainable competitive
advantage in the market21. The author cooperated with additional understudies of his
Future Business Leaders of America gathering, arranged a Blue Ocean advertising
Strategy competition among another social affair of understudies at Centennial High
School in Maryland 22. Benavides encouraged understudies the essentialness of
critical worth headway, a middle thought of. Regard improvement is a system where
an unexpected, goliath bounce in regard is made for both the organization and the
buyer, causing both to be emphatically influenced. Amid the time spent offering
some advantage progression for clients and the organization, assessing and costs
must be balanced precisely for the achievement of the strategy.
The hugeness of the possibility of huge worth progression was obviously
communicated to all understudies related with this Blue Ocean promoting Strategy
ask about. The business people were also shown review regard improvement as
they would participate as judges in the Blue Ocean Strategy contention 23. Benavides
made a gigantic proportion of introduction for the Blue Ocean Strategy competition;
expanded neighbourhood media support, made after creation chronicles for internet-
based life, all in a conscious manner to ensure Howard County's organizations were
21 Shinnar, R.S. and Zamantılı Nayır, D., 2019. Immigrant Entrepreneurship in an Emerging Economy:
The Case of Turkey. Journal of Small Business Management, 57(2), pp.559-575.
22 Chan Kim, W. and Mauborgne, R., 2005. Value innovation: a leap into the blue ocean. Journal of
business strategy, 26(4), pp.22-28
23 Jeon, S., Park, S.R. and Digman, L.A., 2008. Strategic implications of the open-market paradigm
under digital convergence: the case of small business C2C. Service Business, 2(4), pp.321-334.

19MARKETING
totally aware of the Blue Ocean Strategy contention and would be financially solid24.
Howard County's organizations' cash related assistance was relied upon to take care
of costs related with the Blue Ocean Strategy contention. The costs included
presents for champs, sustenance, and other general expenses. The understudies
were excited about their creative Blue Ocean advertising Strategy musings, and a bit
of the champs pushed ahead with their inventive headways by searching for licenses
of their new market developments. The third-place victor in the Blue Ocean Strategy
competition made an innovative model of a web-based life application. The
inspiration driving the application was to focus on and pass on messages of
motivation organized by understudies who should have been shelled with elevating
news rather than the giant proportion of the terrible/negative news granted by
methods for media sources. The understudy transmitted inspiring news by passing
on only, complimentary presents or positive messages on social event people.
In an alternate report, beside Blue Ocean showcasing Strategy ask about,
relentless of positive examinations, Seligman, Rashid, and Parks (2006) drove an
examination of the practical use of positive cerebrum research to reduce or ease
wretchedness. "The examination relied upon the assumption that discouragement
can be managed suitably with the abatement of opposition and by intentionally
assembling positive insights and emotions" 25. Chan and Maubourgne (2005)
developed Blue Ocean strategy by evaluating 30 different sectors and 150 strategic
actions with a century of data26. However, blue ocean strategy cannot be considered
as a new concept and has been used in business administration for a considerable
amount of time. This strategy provides a practical roadmap and theoretical
framework for organisations to prevent rivalries by developing market niche which
facilitates in market growth. The second-place victors made an innovative strategy to
remove chips rapidly without distress. The method required the customer to apply a
swathe to the domain where the piece was held up; a brief timeframe later, run water
over the wrapped zone for a moment. The compound in the swathe made the
dressing swell, interminable supply of the wrap, around two hours afterward, the
piece was in like manner removed.
24 Chan Kim, W. and Mauborgne, R., 2005. Value innovation: a leap into the blue ocean. Journal of
business strategy, 26(4), pp.22-28
25 Borgianni, Y., Cascini, G. and Rotini, F., 2012. Investigating the patterns of value-oriented
innovations in blue ocean strategy. International Journal of Innovation Science, 4(3), pp.123-142.
26 Chan Kim, W. and Mauborgne, R., 2005. Value innovation: a leap into the blue ocean. Journal of
business strategy, 26(4), pp.22-28

20MARKETING
The essential spot champs in the blue sea technique contention organized a
wise tampon with a weighted sensor and a radio repeat unmistakable confirmation
(RFID) chip implanted into the tampon27. The RFID cautions the wearer when the
tampon twists up inundated, sending a banner to the tampon wearer's telephone
educating the wearer regarding the need to change the tampon. Changing the
tampon at standard interims, subordinate upon the menstrual stream, was
instrumental in going without embarrassing minutes and, even more fundamentally,
deflecting unsafe paralyze issue.
TSS is an amazing bacterium that causes malady got from the
comprehensive wear of tampons. The reactions related with TSS show quickly as
heaving, dazedness, red eyes, circulatory strain dropping, high fever, passing out,
and muscle harms. Noxious stagger issue can frame into liver and kidney
disillusionment, touting its 3.3% demise rate 28. Chaos theory deals with the
irregularity and complexity of strategic decisions in an environment which is dynamic
in nature. Various authors suggested incorporation of both the theories to develop a
model which is able to readily adapt to the future possibilities. The RFID tampon
would help TSS and embarrassing minutes by accomplishing the perfect result with
a prudent notice to the wearer29. This strategy provides a practical roadmap and
theoretical framework for organisations to prevent rivalries by developing market
niche which facilitates in market growth. Globalisation has made changes in the
market need and demand quite rapid and companies need to be innovative to cope
with these changes. This has made blue ocean strategy as one of the most
significant concepts in the past decade.
Capitalism and industries in various countries have boomed in the past
decade has made many countries grow significantly where the implementation of the
free market economy has become one key elements of driving this change.
However, there are many where the gap between the poor and the rich have
increased which led to the disappearance of middle-class segments and polarization
of the classes. This shows that in majority of the growing economy, the emerging
27 Chan Kim, W. and Mauborgne, R., 2005. Value innovation: a leap into the blue ocean. Journal of
business strategy, 26(4), pp.22-28
28 Aspara, J., Hietanen, J. and Tikkanen, H., 2010. Business model innovation vs replication: financial
performance implications of strategic emphases. Journal of Strategic Marketing, 18(1), pp.39-56.
29 Chan Kim, W. and Mauborgne, R., 2005. Value innovation: a leap into the blue ocean. Journal of
business strategy, 26(4), pp.22-28

21MARKETING
capitalist have increased in numbers. This shows that companies have new
opportunities of addressing to the needs of these set of consumers having increased
disposable income in the market. These situations have enhanced the importance of
sustainable development of businesses as it is critical to develop competitive
advantage by creating effective strategies through innovative processes to create
sustainable competitive advantages.
However, in this high level of competition in the market, majority of the
companies are facing issues in maintaining a blue market due to the ability of all the
rival companies to replicate each other’s products. This means that even a blue
ocean turns into a red after a certain period of time due to the intensity of the
competition in the market. Imperative moves are masterminded using Blue Ocean
showcasing methodology's reasonable system. The reasonable structure included
hence is set up on system execution; in any case, with the different components
incorporating every examination, technique utilization won't support each element of
this investigation30. This limitation prompts different speculations and capacities that
quick business pioneers to choose the perils related with their decisions as they
headway to the blue sea. Keen data in this examination focuses on making fluid
assets by methods for blue sea advertising technique for organizations. Various
companies have shown that it is possible to develop a blue ocean even after it has
been turned into red. The economy of Turkey is at its lowest point at its past decade
and there has been significant influence on the operations of the companies in the
market.
Improvement in engagement, new markets, and disposing of the rivalries, are
focus results demonstrate from Blue Ocean promoting technique applied
Frameworks execution. A couple of examinations give positive proof of the impact of
the Conceptual Frameworks. The author supported blue sea promoting methodology
reasonability with their ability to set up another market that engaged youth with their
natural item. The organizations that purportedly balanced their mechanics to those of
the system represented in the six models of Blue ocean strategy by Kim and
Mauborgne (2005) had the ability to skip back with an engaged edge or make
another market. According to Kim and Mauborgne (2005), Blue seas are made
30 Aspara, J., Hietanen, J. and Tikkanen, H., 2010. Business model innovation vs replication: financial
performance implications of strategic emphases. Journal of Strategic Marketing, 18(1), pp.39-56.

22MARKETING
exactly when there's a hop in a motivator for buyers as utility and cost, and a hop in
an impetus for the association with respect to profit earned. Separating customers'
needs supports blue sea showcasing procedure disclosure. This examination joins
the distinctive evidence of unexpressed needs as they make a motivating force for
the client bearing something supportive. A strong point of reference is Apple, Ink's.
Development of the iPod (Kim, and Mauborgne, 2005).
Having the ability to focus on the covered is a workmanship a couple of
associations couldn't mind less to practice. The ability to foresee and envision are
gadgets used in executing blue sea advertising technique; grabbing understanding
into what no shoppers need and need is a fundamental section of the compelling
creation of another market space. Allen (1902) illustrated upon James 23:7 from the
King James Version of the Bible, which highlighted the criticalness of contemplations
and focusing them appropriately (Allen, 1902). In case a business head is
unequipped for seeing the possible results overseen by the BOS, perhaps his or her
organizations may neither prosper nor persevere. Since most organizations are
hitched to the red sea showcasing procedure, their essential executions keep them
limited to what is normal and debilitate their ability to picture and push out from the
standard to make new regard improvements (Kim and Mauborgne, 2005a).
Organizations owners may think it best to pay investigators to make sense of what
clients are purchasing; regardless, doing the examination themselves is noteworthy.
According to Kim and Mauborgne (2005), and organizations should never re-suitable
its eyes. There is simply not a suitable option for witnessing first-hand. Staggering
skilled workers don't paint from other people's depictions or even from photographs;
they like to see the subject for themselves. The equal is legitimate for mind blowing
strategists ().
Dissecting first-hand the limits that challenge the blue sea is what Bloomberg
did concern the vendors and agents; he had the ability to see what was indistinct,
unveiling the criterion for online investigation to help customers in understanding the
cash related data. Seeing the unnoticeable is fundamental to the accomplishment of
Blue Ocean showcasing procedure execution despite keeping the client or end
customer at the front line. Usage of the blue sea promoting system technique canvas
will help business people in watching the end-all strategy and open up open
entryways for the organization to make new markets and prosper. At whatever point

23MARKETING
organizations thrive, the merchants giving their things similarly prosper, close by
their accomplices and their systems. The administration organizations giving power
and water advantage, close by business specialists and owners; in the long run, the
governing body gets costs and rewards from all ().
2.9 SUMMARY
The literature review has critically evaluated all the aspect of blue ocean
strategy and the framework supported by the organisations in the industry which
resulted in the development of critical literature in the field of Blue ocean strategy.
The difference between the blue ocean strategy and the red ocean strategy has
been critically discussed in this literature which shows that majority of the work done
by Kim and Mauborgne. The explanation of the blue ocean strategy showed that
there developing an uncontested market is one of the most viable ways of improving
sustainability of the companies. However, it is most difficult job for a company to
develop a blue ocean for themselves. Different theories and principles have been
suggested which has facilitated in understanding the factors and processes for
developing a blue ocean.
3.0 DISCUSSION AND IMPLICATION
The examination of the past literature on the conditions in Turkey and the use
of Blue ocean strategy has clearly showed that it is essential to develop new markets
in order to deal with economic downturn. The companies that are unable to grow
due to the lack of demand and growth in the market should develop a new market
where there are new possibilities and no competition from the rival companies in the
market. The evaluation of the data from the past companies clearly showed that
there has been significant changes due to the development of blue ocean strategies
for the companies in the market which can be understood by the changes in
approaches my the first movers.
3.1 DISCUSSION OF LITERATURE AND IMPLICATIONS
The economy of Turkey is in turmoil and is affected by the increase in inflation
and unemployment. Even though, Turkey is one of the most developed countries in
the world, the business organisations are affected heavily due to the change in the
disposable income of the population which has reduces the sales volumes in various
sectors. Blue ocean strategy has been defined as one of the tools of strategic

24MARKETING
management developed in the twenty first century. This strategy aims at developing
frameworks which are directed as discovering new value propositions and
businesses. The strategy emphasises on the fact that are key to sustainable
competitive advantage is developing uncontested market and not by competing in
the existing market.
Red ocean are the companies suffering from crowded market space where
there is significant increase in the number of competition and it increases the overall
price competition by reducing the differentiation of the products. On the contrary,
blue ocean is free of any type of competition as the market is exclusive to the
organization as other organizations has not been able to identify or cater to the
needs of these niche consumer segments. These markets provide greater possibility
to the companies to succeed by increasing their profit margin by developing new
demand and changing the basis and nature of the competition. Extreme competition
in the market due to the advent of globalisation has affected global markets. This has
resulted in the adoption of strategies which are able to create a differentiated market
for the organizations in the country. Organizations aim to penetrate in markets
where there is no competition or the needs of the consumers have not been
addressed by the other companies in the market. This results in rapid growth and
profitability of the organizations. A different definition of blue ocean strategy states
that it aims to satisfy the consumers by developing products and services in a market
which is private and free from competition by developing innovative services and
goods. Firms using strategy does not compare themselves with other organizations
in the market but aim to make sure that there is differentiation among the products
and how they can be used to gain competitive advantage through value innovation.
The evaluation of the blue ocean strategy implemented by the companies in
the past have shown that Cirque du Soleil is one of the primary companies that
implemented blue ocean strategy into their business model. The success of the
company was due to the reinvention of their business model which enabled the
company to generate more revenue than the counterparts in the industry. Similarly,
another company that has been able to develop a new market is Nintendo. The case
of Nintendo is different from the previous one and Wii was developed by Nintendo in
the year of 2006 and is a video game console played at home. It competed with the
PlayStation 3 by Sony and Xbox 360 by Microsoft. The controller had unique

25MARKETING
features which resulted in appeal to wider segment of consumers in market than all
other market competitors and become the highest in terms of sales in the year of
2012. The company has been in the market for decades and it was not at all easy to
predict the rise of the company in the market and it became the most innovative
company in the year of 2008. The founders of the circus initially focused on reducing
the value less or elements with low value for the consumers but had high value. The
use of trained animals and costly ring methods were the two most critical elements
that had bare minimum value for the consumers. Instead, the consumers were
provided with sophisticated theatrical having unique characters and storyline. This
facilitated in generating a new genre by the company which is neither a circus nor a
theatre so there were no rivals that could effectively compete with this new model.
Nintendo was able to enter into the market of Google and Apple by tapping
into the market of the potential casual gamers those who does not consider it as a
hobby or interest. Initially, consoles and games were developed only for the gamers
that are hardcore and spend a majority of their time on it. The redesign of the
gaming console and simplified gaming process made the games fun and the
company was able to gather a totally new segment of consumers who were the
casual gamers and wanted to experience the enjoyment of playing with their families.
This includes players from all demographics regardless of their age and gender.
However, the organisation had been able to generate a blue ocean for themselves it
diminished with the advancement of technology and they lost their top spot in the
market and it is essential for the organization to develop another blue ocean in order
to facilitate their growth in a new market segment. However, with the advancement
of technology there has been significant changes in scenario where organizations
have been able to develop a blue ocean but it is difficult to sustain unless the blue
ocean is very strong. Nintendo has been losing its share in the market which is a
result from the imitation capabilities from the rival companies in the market which
were second and third movers.
4.0 RECOMMENDATION
This has clearly shown that it has clearly shown that in the near future it is
essential for the organizations in market to develop a blue ocean if they want to
sustain in the developed market as most of the developed markets have become

26MARKETING
highly saturated which is the case in United States and United Kingdom where the
retail industry is highly saturated and Amazon has been able to maintain their lead
and supremacy due to the use of blue ocean to cater to the different needs of the
market and identifying the future needs well before the competitors or other rival
companies in the market. This is similar in the case of the Apple where they were
able to develop a blue ocean with their iPod and were able to hold on their
supremacy with products like iPhone and iPad but the rival companies have obtained
the power imitability which has reduce the blue ocean for the company significantly.
However, it is possible to rediscover blue ocean even though it takes some time but
organisations should constantly evaluate the behaviour of the consumer to examine
their future needs and possibilities. This is one of the most effective ways of entering
untapped market and increase profit as the market competition is nil.

27MARKETING
5.0 REFERENCES
Aspara, J., Hietanen, J. and Tikkanen, H., 2010. Business model innovation vs
replication: financial performance implications of strategic emphases. Journal of
Strategic Marketing, 18(1), pp.39-56.
Chan Kim, W. and Mauborgne, R., 2005. Value innovation: a leap into the blue
ocean. Journal of business strategy, 26(4), pp.22-28.
Shinnar, R.S. and Zamantılı Nayır, D., 2019. Immigrant Entrepreneurship in an
Emerging Economy: The Case of Turkey. Journal of Small Business
Management, 57(2), pp.559-575.
Ercetin, S.S., Ray, N. and Sen, S., 2019. Economic Growth and Demographic
Transition in Third World Nations: A Chaos and Complexity Theory Perspective.
Yang, J.T., 2012. Identifying the attributes of blue ocean strategies in
hospitality. International Journal of Contemporary Hospitality Management, 24(5),
pp.701-720.
Jeon, S., Park, S.R. and Digman, L.A., 2008. Strategic implications of the open-
market paradigm under digital convergence: the case of small business
C2C. Service Business, 2(4), pp.321-334.
Kim, W.C., 2005. Blue ocean strategy: from theory to practice. California
management review, 47(3), pp.105-121.
Roth, S., Melkonyan, A., Kaivo-Oja, J., Manke, B. and Dana, L.P., 2018.
Interfunctional business models: map grid for an uncharted quadrant of the blue
ocean. International Journal of Entrepreneurial Venturing, 10(5), pp.581-595.
Kim, S., In, H.P., Baik, J., Kazman, R. and Han, K., 2008. VIRE: Sailing a blue ocean
with value-innovative requirements. IEEE software, 25(1), pp.80-87.
Yang, C.C. and Yang, K.J., 2011. An integrated model of value creation based on
the refined Kano's model and the blue ocean strategy. Total Quality Management &
Business Excellence, 22(9), pp.925-940.

28MARKETING
Borgianni, Y., Cascini, G. and Rotini, F., 2012. Investigating the patterns of value-
oriented innovations in blue ocean strategy. International Journal of Innovation
Science, 4(3), pp.123-142.