Developing Blue Ocean Strategy in Construction Industries Using an Improved Model of Kano

Developing Blue Ocean Strategy in Construction Industries Using an Improved Model of Kano

Mohammad Abdolshah (Islamic Azad University – Semnan, Iran), Fariborz Ahmadzadeh (Islamic Azad University – Semnan, Iran) and Afshin Abbaspour (Islamic Azad University – Semnan, Iran)
Copyright: © 2017 |Pages: 16
DOI: 10.4018/978-1-5225-2066-5.ch010
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Abstract

Blue ocean strategy includes a consistent pattern of strategic thinking in the creation of new markets in various industries. This chapter examines how to create a blue ocean and its role in improving the construction industry. This is library research alongwith case study. It has been prepared based on information gathered from articles published in international journals and referring to large and reputable builder companies. In the concept of strategy, “Blue Ocean” is referred to two overall scope of blue and red ocean. In this chapter, we used the Kano method for evaluation and selection of the features in the construction industry and then, through a four-step approach, it was decided what features should be removed, innovated, enhanced or improved. Finally, using improved hybrid model of Kano and the pillars of the blue ocean strategy, we concluded that economic factors and psychological factors that impact on the consumers need investment and more attention.
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2. Research Background

Blue Ocean Strategy which was published in 2005 by Professor Chan Kim and Renée Mauborgne, drew a lot of attention among academics and experts. This process, in its agenda has the retention of existing customers and attracts new customers (Ching-Chow Yang, K.-JY, 2011). Blue Ocean Strategy is the result of two decades of research and study on more than 150 strategic movements of the world, in more than a number of different industries during the last 100 years. This approach is formed from two strategies at the same time, the strategy of differentiation and cost reduction strategies. At the same time, the organization offers a series of methodologies and management tools to create an unrivaled, new market space. The authors of Blue Ocean Strategy believe that the only way to win the competition, is stop trying to win the competition and instead of entering the red ocean of bloody competition, to enter the infinite market space of ocean water, and to create demand. A market in which, the rules are not specified in, and there are opportunities for profitable growth. In short, instead of getting a larger share of the cake, we should seek to enlarge the cake. Chan Kim and Renée Mauborgne, the authors of the book, with a revolutionary in the field of management and strategy, innovative approach in terms of the proposed business altogether. They offer new and innovative philosophy through criticizing the dominant paradigm in the field of strategic thinking, which is based on participation in the competition, straight face and blood flow, and ultimately the formation of red ocean (ocean of blood), in whci business takes place upon it in a peaceful environment, away from the bloody conflict, and in the blue ocean zone (R.Toulayi, 2008).

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