Blue Ocean strategy for creating value innovation: A study over Kedai Digital in Yogyakarta, Indonesia

Marheni E. Saputri and Hendrati D. Mulyaningsih
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Marheni E. Saputri: School of Business and Communication – Telkom University, Jl. Telekomunikasi no. 1, Bandung, West Java 40257, INDONESIA
Hendrati D. Mulyaningsih: School of Business and Communication – Telkom University, Jl. Telekomunikasi no. 1, Bandung, West Java 40257, INDONESIA

Journal of Administrative and Business Studies, 2015, vol. 1, issue 1, 14-20

Abstract: In Yogyakarta, merchandise business has been developing rapidly in recent years. The phenomenon has made entrepreneurs in the industry compete to retain customers, by which most of them fall into a price war. To create a new market and make the competition irrelevant, Kedai Digital, a merchandise manufacturer in the region, has attempted to implement Blue Ocean strategy, wherein value innovation has a critical position. This study aims at analyzing current value innovation in the company, in which it is supposed to determine value innovation and identify value drivers. A mix-method approach is taken, by which qualitative approach is adopted in conducting an in-depth interview with 12 decision makers from 6 companies currently participating in the merchandise business in Yogyakarta, while quantitative approach is conducted by spreading questionnaire to 100 persons based on a purposive sample over the Kedai Digital’s customers. Canvas Strategy and Four Framework Analysis are taken as the tools for analysis. Findings show that 8 value standards serve within the competition, i.e. volume, price, prestige, quality, promotion, service, variation and on-time delivery. Most companies attempt to win the competition in these area. In particular, the Kedai Digital has been creating 3 distinguished value innovation instead of playing in the red ocean. These value innovation are a free design, a unique location and a one-stop shopping concept. These values have made Kedai Digital to be a leading company in the industry and may have made the competition irrelevant.

Keywords: Merchandise industry; Value innovation; Blue Ocean strategy; Kedai Digital (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:apb:jabsss:2015:p:14-20

DOI: 10.20474/jabs-1.1.3

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