Analysis of Blue Ocean Strategies on the Performance of Roofing Sheet Manufacturers in Kenya
Abstract
The production and uptake of locally manufactured roofing sheets have been on a steady downward trajectory over the last ten years, leading to a significant decline in revenue and employment in the sector. Kenya's roofing sheet production fell more than 8 percent in 2019 following a decline that started with weakening demand in 2010. Blue ocean strategies prescribe a path to positively sustaining performance by shifting firms from cut-throat market competition (the red ocean) to a wide-open new, uncontested market space (the blue ocean). The main purpose of this study was to analyse the effect of blue ocean strategies on the performance of roofing sheet manufacturers in Kenya. The specific objectives of this study were to establish the effect of value innovation strategy, examine the effect of customer acquisition strategy, evaluate the effect of competitor elimination strategy on the performance of roofing sheet manufacturers in Kenya. The study adopted a mixed research method and employed a descriptive research design. The target population consisted of 241 employees drawn from all the fifteen (15) roofing sheet manufacturers in Kenya registered with the Kenya Association of Manufactures (KAM), from whom a sample size of one hundred and twenty-seven (127) employees was selected using the Krejcie and Morgan table formula. The findings of this study have illuminated a statistically significant positive effect of Blue Ocean strategies on firm performance, albeit with variations among specific strategies. These statistics imply that 51% of the variance in the performance of roofing sheet manufacturers can be attributed to the adoption of the blue ocean strategy. Consequently, the study recommends that roofing sheet manufacturers must prioritize the adoption of need-based value innovation and customer acquisition strategies overall blue ocean strategies over any other strategies therein to ensure sustainable performance
Downloads
References
Alam, S., & Islam, T. M. (2017). Impact of Blue Ocean Strategy on Organizational Performance: A Literature Review Toward Implementation Logic. IOSR Journal of Business and Management, 01-19.
Anant, G., & Rajeshwari, G. (2016). Blue Ocean Strategy - Big vision small steps. ICTACT Journal on Management Studies, 401-408.
Azlin, S. A., & Amran, R. (2018). Linking innovativeness and business performance: A Study of Malaysian technology-based SMEs. Journal of Management Info (JMI), 13-16.
Collins, K. (2014, November 2014). The impact of the Blue ocean strategy on the performance of Bamburi Cement Limited in Kenya. Nairobi, Kenya.
Dzingirai, M., Mhlanga, D., & Mveku, B. (2023). The Nexus Between Blue Ocean Strategy and Organizational Performance of SMEs in the Fourth Industrial Revolution Era. The Fourth Industrial Revolution in Africa, 175-191.
Eric, H., & Cienthia, L. (2021). Implementation of Blue Ocean Strategy for long-term business strategy in land transporter companies in Indonesia. International Journal of Economics, Business and Accounting Research, 822-836.
Goodarz, J. D., & Samin, R. (2022). Blue Ocean Strategy: A Study Over A Strategy Which Help The Firm To Survive From Competitive Environment. International Journal of Academic Research in Business and Social Sciences, 477-492.
Hanifah, & Aswanti, S. (2023). The Implementation of Blue Ocean Strategy To Create A Market Niche. Jurnal Manajemen Transportasi & Logistik (JMTransLog), 191-112.
Išoraitė, M., & Alperytė, I. (2022). HOW THE BLUE OCEAN STRATEGY HELPS INNOVATE SOCIAL INCLUSION. ENTREPRENEURSHIP AND SUSTAINABILITY ISSUES, 239-251.
Josmael, R. K., & Carlos, C. (2023). A critical analysis on the Blue Ocean Strategy and an approach for its integration into the Product Development Process. Federal University of Technology of Paraná State, 79-94.
Kadam, S. S. (2023). Impact of Blue Ocean Strategy on Organizational Performance: A Case Study of Uber Taxi Service Provider for India. Rivista Italiana di Filosofia Analitica Junior, 1-14.
Karaoulanis, A. (2018). Strategic Transformation and Innovation towards Blue Ocean Creation in a Changing Corporate Reality. Business Ethics and Leadership, 49-51.
Kariuki, J. (2020). Competitor elimination strategies adopted by roofing material manufacturers in Athiriver zone Kenya. Stratford journal, 50-62.
Kenya Association of Manufacturers. (2016, August). Manufacturing in Kenya: Features, challenges and opportunities. Retrieved from www.set.odi.org: https://set.odi.org/
Kim, W. C., & Mauborgne, R. (2014). Blue ocean strategy: from theory to practice. California Management Review, 105-121.
Mohamed, R. (2020). An Early Examination of the Blue Ocean Strategy and Innovation Performance in Manufacturing Firms. International Journal of Supply Chain Management, 9280938.
Mohammad, A. A., & Tareq, N. H. (2018). The Impact of Applying the Blue Ocean Strategy on the Achievement of a Competitive Advantage: A Field Study Conducted in the Jordanian Telecommunication Companies. International Business Research, 108-119.
Mohammad, T. B., & Nayef, R. A. (2014). The effect of blue ocean strategy on increasing competitive advantage on commercial banks in Jordan. Journal of business and management, 31-41.c
Mutua, J., & Kibe, L. (2022). The Essentials of Research Methods. Nairobi, Kenya: Research Prober.
Nasereddin, A. Y. (2023). Impact of the Blue Ocean Strategy Dimensions in Achieving Competitiv Competitive Advantage fr antage from the P om the Perspectiv erspective of Faculty Members. Information Science Letter, 2685-2698.
Okechukwu, E., & Eucharia, A. E. (2018). Effect of Blue Ocean Strategy on the Performance of Telecommunication Firms in South East Nigeria. European Journal of Business and Management.
Onwuzuligbo, T. L., & Audu, Y. P. (2023). Blue Ocean Strategy and Non-financial Performance of BN Ceramics Company in Kogi State, Nigeria. Journal of Good Governance and Sustainable Development in Africa, 57-79.
Rahman, H., & Choudhury, S. (2019). The Influence of Blue Ocean Strategy on Organizational Performance. Global Disclosure of Economics and Business, 91-104.
Sang, C. J., & Kimitei , E. (2021). Blue ocean strategies as panacea to sustainable performance of tea firms in Kenya. African Journal of Business Management, 59-69.
Shared, A. (2019). The Role of the Blue Ocean Strategy in Achieving a Competitive Advantage: An Empirical Study on Al - Rajhi Bank - KSA. International Review of Management and Business Research, 158-173.
Sijabat, F. N., & Sabang, E. (2021). A Review on Blue Ocean Strategy Effect on Competitive Advantage and Firm Performance. Academy of Strategic Management Journal, Vol: 20 Issue: 1.
Sri, R., & Gede, E. P. (2019). Blue Ocean Strategy for creating Value of the Organization: Examination of Differentiation with Red Ocean Strategy. International Journal of Recent Technology and Engineering (IJRTE), 3827-3841.
Turki, A. T., & Khemakhem, R. (2022). The implications of the Blue Ocean Strategy on marketing performance: an analytical study of the opinions of a sample of workers in Asiacell Telecom in Iraq. Journal of Positive School Psychology, 1945–1957.
Utami, C. (2021). Innovation Strategy Analysis through a Blue Ocean Strategy for Wear It. International Conference on Entrepreneurship (ICOEN).
Waithaka, P. (2016). Moderating effect of organizational factors between competitive intelligence practices and performance of firms listed on the NSE. European Scientific Journal, 213-223.
Copyright (c) 2024 Justice Mutua, PhD, Charity Chacha
This work is licensed under a Creative Commons Attribution 4.0 International License.
