Blue Ocean Strategy: How to create Uncontested Market Space and Make the Competition Irrelevant

Abstract

Many literatures acknowledge that the blue ocean strategy has influenced on competitive advantage, and subsequently the competitive advantage can predict firm performance. This study attempts to review relevant articles regarding the blue ocean strategy and link it with firm's competitive advantage and performance. Extant relevant literature of past research on blue ocean strategy in the various outlets were searched by using search strategy key words: “blue ocean strategy”, “blue ocean and competitive advantage”, “blue ocean and performance”, and “value innovation”. Collected articles were reviewed further and synthesized based on the purpose to link between the Blue Ocean and competitive advantage, and firm performance which arrive at establishing a proposed framework. This article develops a theoretical foundation for proposing a framework that links the potential effect of Blue Ocean Strategy on Competitive Advantage and its implication towards firm performance. This article provides avenue for further empirical study in examining the effect of the blue ocean strategy on firm performance and the role of competitive advantage as a mediator.