Global Journal of Management and Business Research, A: Administration and Management, Volume 23 Issue 9

Literature Review Red Ocean Strategy Global Journal of Management and Business Research ( A ) XXIII Issue IX Version I Year 2023 58 © 2023 Global Journals Describing six temperaments or traps which limit managers in their shift to blue oceans [5]; Trap One: Seeing Market-Creating Strategies as Customer-Oriented Approaches – “ voice of customers (voc)” Making customer happier by providing them better and updated products .The commonly used approach of asking existing customers sometimes called as voice of customers ‘VOC’ [6] [7] whereby customers themselves defined their pursuit of happiness to identify what could make them more happier and more satisfied. Voice of customer decisions mostly counted on self-experiences and may thus act as a potential source of favouritism or fallaciousness which might lead to potentially misleading conclusions regarding consumer choice behaviour [9] [10] [11]. Blue ocean strategy is about changing noncustomers who do not prefer to opt the current industrial offerings. Strategies that failed to make appeal to customers Google glass and Sony's Portable Reader System where mentioned as examples of Trap one by the authors [4]. Therefore, Trap One: Seeing Market-Creating Strategies as Customer-Oriented Approaches is found to be a similar approach as majorly depending on voice of customers (voc) to make new offerings. Trap Two: Treating Market-Creating Strategies as Niche Strategies – “ Target marketing” The strategies which majorly emphasize on discovery of a new segment of buyers in the existing market who haven’t been yet served could rather act as a partition strategy resulting in a much smaller size of demands [4]. Niche in business means an opportunity to sell a particular product to a particular group of people [15]. Target marketing is comprises of three components: market segmentation, marketing targeting and product positioning [12] [13]. Targeting is proven to be logically supported only in the rare occasions where an organisation can only operate in one segment, as may be the case with geographical segmentation of retail operations [14]. Blue ocean strategy favours desegmentation and finding of more common things that could join different consumer groups together to make bigger size demands. Too much segmentation of market by Delta's Song airline venture made its demand size too small to be sustainable. Therefore, Trap Two: Treating Market-Creating Strategies as Niche Strategies is found to be a similar approach as using target marketing to make new offerings. Trap Three: Confusing Technology Innovation with Market-Creating Strategies–“Consumer innovativeness” Building up a new market space should not be confused with what is called in scientific terms as invention. Scientific inventions and commercial innovation are two different things [18]. Innovation is described as an idea, practice, or object that is recognized as new by people or units that adopt it [16]. Innovation refers being able to provide goods and services separate from the competition and count profits on the value they provide to their customer [17]. Unless an enterprise is able to put in place the supremacy of its products in its customers' minds, a differentiation strategy based on relative product performance is likely to be ineffectual [19]. Consumer innovativeness , or “spotless usage” is the proneness to purchase new products constantly and more immediately surpassing other consumers [20]. Blue ocean says an invention should be well synchronized with its commercial objective to generate profits [5]. For example, Segway Personal self-balancing was unable to become a good commercial product since the product was’nt easy to use and inconvenient on the other hand Starbucks, Cirque de Soleil, Salesforce.com, are mentioned as successful examples of good commercially valued products [4]. Therefore, Trap Three: Confusing Technology Innovation with Market-Creating Strategies is found to be a similar approach as relying on Consumer innovativeness to create competitive advantage. Trap Four: Equating Creative Destruction with Market Creation – “Gales of creative destruction ” New markets can be build without ending or replacing current products market. Creative Destruction, coined by Austrian economist Joseph Schumpeter in his 1942 work, Capitalism, Socialism, and Democracy (CSD), is a generative process within capitalism that “transforms the economic structure from within, continually destroying the old one, continually creating the new one” ( see p. 83, [italics in original]). It is this “perennial gale” that every business operates in, and in that “each component of business strategy obtains its real importance” (p. 83) [21] [22]. Schumpeter's gales of creative destruction' depicts how innovation is creative and beneficial in bringing new industries, revenues and employment, and at the same time causes destruction of some established firms, a wide range of goods, services and employments, and the dreams of unsuccessful entrepreneurs [22]. But Jacobson commit to paper (1992, p. 803), “no common laws of business exist” and “business triumph is a ‘science of the specific’ (p. 804) [23]. Thus ,as the digital photography displaced photographic film , creation of Viagra's new market for lifestyle drugs, and Grameen Bank's as microfinance industry are some of the examples mentioned by the authors [1][2], associating market creation with creative destruction restricts an organization's opportunities . Therefore, Trap Four: Equating Creative Destruction with Market Creation is found to be a similar approach as employing gales of creative destruction to built newer business opportunities. Trap Five: Equating Market-Creating Strategies with Differentiation – “ Productivity frontier”