A Decision-Analytic Approach to Blue-Ocean Strategy Development

  • Matthias G. Raith
  • Thorsten Staak
  • Helge M. Wilker
Conference paper
Part of the Operations Research Proceedings book series (ORP, volume 2007)

Abstract

The potential value created with a new product or service provided by a firm is given by the difference between its (monetary) benefit, in the view of the firm’s customers, and the unit production cost to the firm. To what extent this potential value can be exploited as a market opportunity depends on the firm’s success in obtaining a competitive advantage over other firms in the market. In order to acquire a competitive advantage, a firm must outperform its rivals in value creation (cf. Besanko et al. [1]).

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References

  1. 1.
    David Besanko, David Dranove, Mark Shanley, and Scott Schaefer. Economics of strategy. J. Wiley & Sons, Hoboken, NJ, 4th edition, 2007.Google Scholar
  2. 2.
    W. Chan Kim and Renée Mauborgne. Blue ocean strategy. Harvard Business Review, 82(10):76–84, October 2004.Google Scholar
  3. 3.
    W. Chan Kim and Renée Mauborgne. Value innovation. the strategic logic of high growth. Harvard Business Review, 82(7/8):172–180, July–August 2004.Google Scholar
  4. 4.
    W. Chan Kim and Renée Mauborgne. Blue ocean strategy: how to create uncontested market space and make the competition irrelevant. Harvard Business School Press, Boston, Mass., 2005.Google Scholar
  5. 5.
    Michael E. Porter. Competitive advantage: creating and sustaining superior performance. Free Press, New York, 1985.Google Scholar

Copyright information

© Springer-Verlag Berlin Heidelberg 2008

Authors and Affiliations

  • Matthias G. Raith
    • 1
  • Thorsten Staak
    • 1
  • Helge M. Wilker
    • 1
  1. 1.Department of Economics and ManagementOtto-von-Guericke UniversityMagdeburgGermany

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