The Role of Blue Ocean Strategy in Achieving the Sustainable Competitive Advantage

Master Thesis submitted to the Council of the College of Administration and Economics / University of Karbala as part of a Master’s degree of Science in Business AdministrationBy
Zainab Makki Mohmoud Al–Banna
Supervisor
Dr. Alaa Farhan Taleb Ass. Prof .Fouad Al- Attar

Abstract The present study deals with the role of blue ocean strategy (independent variable ) and its indexes ( represented by elimination, reduction, increase and creativity ) in achieving the sustainable competitive advantage (dependent variable ) according to its dimensions (represented by quality , response to customers, efficiency and core Competeneies ) . The creation of blue ocean requires a new market, instead of tracking competitors, by way of the strategies of the competitive advantage . These ocean are identified through opening market area not dealt with before, represented by non – exist ant manufactories which never stop, rather they change by themselves continually . Manufacturing improves and markets enlarge due to customers needs and tastes and the increase of competition in order to achieve the advantage that the organization owns in business environment and becomes superior to other competitors in a way hard to be imitated . The problem of the study lies in the question : Does the strategy of the blue ocean have a role in achieving the sustainable competitive advantage ? To be more specific, the study tries to answer the following questions : 1. Do the concerns of the organization under study vary in adopting the main variables of the study ? 2. Is there a correlation between the strategy of the blue ocean ( with its indexes ) and the sustainable competitive advantage ( with its dimensions ) ? 3. Is there effectiveness relation between this strategy and that advantage ? The study aims at : 1. Knowing the range of adaptation of the organizations under study to the concept of new strategy, with its indexes, and its role in achieving the sustainable competitive advantage . 2. Identifying the correlation between blue ocean strategy, with its indexes, and the dimensions of the sustainable competitive advantage in the organization . 3. Identifying the effectiveness relation between the blue ocean strategy, with its indexes, and the dimensions of the sustainable competitive advantage in the organization . To achieve these aims, a hypothetical diagram is set to identify the nature of relation between the dependent and independent variables . Some main and subordinate hypotheses are extracted from it, showing the variation among the companies under study in accordance to the variables and the relation and effect among them . These hypotheses are : 1. The concerns of the organization under study do not vary in adopting the study variables . 2. There is no correlation of a statistical importance between the blue ocean strategy and the sustainable competitive advantage . 3. There is no effectiveness relation of a statistical importance between the blue ocean strategy and the sustainable competitive advantage . To carry the present study empirically and test its hypotheses, two companies are chosen , namely Zain and Asia cell telecommunication companies for being two of mobile companies in Iraq that face great competitive challenges due to modernity of manufacture in local markets. A questionnaire is used as a main tool in collecting data related to the empirical part . The study sample includes 100 manager of units, department and other in both companies . The study concludes the following : 1. The statistical results show a strong correlation of a statistical importance between the blue ocean strategy, with its indexes, and the sustainable competitive advantage . 2. The statistical results show a meaningful effectiveness relation of a statistical importance between the blue ocean strategy, with its indexes, and the sustainable competitive advantage . The study recommends that : 1. It is necessary for the managements of both companies to depend on the blue ocean strategy for being a modern managerial philosophy that is away of any new competitions . 2. The company that tries to apply the blue ocean strategy has to consider the indexes of this strategy, which are : elimination, reduction, increase and creation, and adapt them with the company’s reality .