Using Key “Blue Ocean” Tools for Strategy Rethinking of a SME: A Case from the Bulgarian Knitwear Industry

Emil Papazov; Lyudmila Mihaylova

doi:10.1515/eb-2016-0028

Using Key “Blue Ocean” Tools for Strategy Rethinking of a SME: A Case from the Bulgarian Knitwear Industry

Authors

Emil Papazov University of National and World Economy – Sofia, University of Ruse
Lyudmila Mihaylova University of Ruse

DOI:

https://doi.org/10.1515/eb-2016-0028

Keywords:

“Blue Ocean” strategy, small and medium enterprise (SME), strategic management, value innovation

Abstract

The purpose of the article is to explore opportunities for rethinking the strategy of small and medium enterprises (SMEs) using the “Blue Ocean” concept and its inherent value innovation paradigm as an alternative to the traditional competitive strategy rationale. The paper also highlights important aspects of analytical tools of a relatively less known practice for Bulgaria, such as the “Strategy Canvas”, the “Four Actions Framework”, the “Eliminate-Reduce-Raise-Create Grid” and the “Six Paths Framework”, and shows how to apply them when analysing and creating a new and uncontested market space. Special attention is paid to the possibilities concerning the practical use of the described tools in a leading SME from the Bulgarian knitwear industry.

References

Aulet, B. (2013). Disciplined Entrepreneurship. 24 Steps to a Successful Startup . Hoboken, New Jersey, USA: John Wiley& Sons, Inc.

Bistrova, J. & Lace, N. (2012). Trade-off between Investor’s Short- and Long-term Goals. Economics and Business, 22 , 23–29.

Bourletidis, D. (2014). The Strategic Model of Innovation Clusters: Implementation of Blue Ocean Strategy in a typical Greek Region. Procedia – Social and Behavioural Sciences, 148 , 645–652. http://dx.doi.org/10.1016/j.sbspro.2014.07.093

Burke, A., van Stel, A. & Thurik, R. (2009). Blue Ocean Versus Competitive Strategy: Theory and Evidence (May 29, 2009). ERIM Report Series Reference No. ERS-2009-030-ORG. Retrieved July, 15, 2015 from http://ssrn.com/abstract=2024822

Ciemleja, G. & Lace, N. (2011). The Model of Sustainable Performance of Small and Medium-sized Enterprise. Engineering economics , 22 (5), 501–509. http://dx.doi.org/10.5755/j01.ee.22.5.968

David, F. R. (2011). Strategic management: concepts and cases. Boston: Prentice Hall.

Kim, W. & Mauborgne, R. (2002, June). Charting Your Company’s Future. Harvard Business Review , 5–11.

Kim, W. C. & Mauborgne, R. (2005a). Blue Ocean Strategy: How to Create Uncontested Market Space and Make Competition Irrelevant . Boston, Massachusetts: Harvard Business School Press.

Kim, W. & Mauborgne, R. (2005b). Value innovation: a leap into the blue ocean. Journal of Business Strategy , 26 (4), 22–28. http://dx.doi.org/10.1108/02756660510608521

Kim, W. & Mauborgne, R. (2014, May). Blue ocean leadership. Harvard Business Review , 61–68.

Milev, S. (2010). Strategicheski resheniya za klasternobazirano inovativno razvitie na industriya (po primera na trikotazhnoto proizvodstvo v R Bulgaria ). (Doctoral dissertation (unpublished), University of Ruse). (In Bulgarian).

Mislyashki, B. (2010). Metodika za formulirane na strategiya “Sin ocean”. Avangardni nauchni instrumenti v upravlenieto, UNWE – Sofia, 3, 410–417. (In Bulgarian).

Todorov, K. A. (2011). Biznes predpriemachestvo, vol. II. Sofia: BAMDE. (in Bulgarian).

Papazov, E. & Mihaylova, L. (2009). Adapting the growth-share model for planning purposes in SMEs. The Annals of “Eftimie Murgu” University – Fascicle Economic studies, 4 (1), 268–276.

Papazov, E. & Mihaylova, L. (2010). Information Provision for Strategic Planning in Bulgarian SMEs. Review of international comparative management, 11 (4), 575–581. http://www.rmci.ase.ro/no11vol4/Vol11_No4_Article3.pdf

Papazov, E. & Mihaylova, L. (2011). Produktovata diversifikatsiya v MSP kato antikrizisna reaktsiya. Journal “Izvestiya na Ikonomicheski universitet – Varna” , 2 , 122–127. (In Bulgarian).

Papazov, E. K. (2012). Strategic management . Ruse: Avangard print. (in Bulgarian).

Papazov, E. & Mihaylova, L. (2012a). Vazmozhnosti za izpolzvane na matrichni modeli za nuzhdite na strategicheskiya controlling v MSP. Proceedings of IX International Scientific Conference „Management of innovation – enterprises, banks, universities”, APIUI, Varna, 2012. (In Bulgarian).

Papazov, E. & Mihaylova, L. (2012b). Using systematic planning tools for strategy rethinking of SMEs in hard times. The Annals of “Eftimie Murgu” University – Fascicle Economic studies, 7 (1), 427–438.

Papazov, K. & Milev, S. (2005). Konkurentnost chrez osvobozhdavane na ostareli strukturi i nachin na mislene. Ikonomika , 4 , 12–18. (In Bulgarian).

Siegemund, C. (2008). Blue Ocean Strategy for Small and Mid-sized Companies in Germany – Development of a Consulting Approach . Hamburg: Druck Diplomica Verlag GmbH.

Sheehan, N. & Vaidyanathan, G. (2009). Using a value creation compass to discover “Blue Oceans”. Strategy & Leadership , 37 (2), 13–20. http://dx.doi.org/10.1108/10878570910941172

Zafirova, Tz. J. (2008). Strategichesko upravlenie . Varna: Nauka i Ikonomika. (In Bulgarian).