Testing the Validity of Blue Ocean Strategy versus Competitive Strategy: An Analysis of the Retail Industry

Andrew Burke, André van Stel and Roy Thurik
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Andrew Burke: Trinity College Dublin

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Abstract: We investigate the nature of the competition process in retailing by contrasting blue ocean strategy and competitive strategy. We develop a methodology to test the core assumptions of both these major schools of strategic management. Applying this methodology to a large data set of shop type averages within the retailing sector, we find empirical support for blue ocean strategy in terms of creating new retail market space. At the same time we also find support for competitive forces eroding temporary profits. However, we find that these forces are sufficiently slow to enable periods of supernormal profits for retail innovators.

Keywords: advantage; blue ocean strategy; competitive strategy; dynamic capabilities; entry; exit; growth; innovation; management; perspective; profitability; resources; retailing; sustainable profits (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (1)

Published in International Review of Entrepreneurship, 2016, 14 (2), pp.123-146

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-02014003

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