Impact of Blue Ocean Strategy on Organizational Performance: A Case Study of Uber Taxi Service Provider for India

Abstract

“Blue ocean marketing strategy” (BOMS) asserts that businesses should formulate new value for products and services to customers from different segments and place themselves in an uncontested market environment. The aim of this research is to identify the extent to which the transport sector in India has adopted the strategy of the Blue Ocean in enhancing competitive advantage. The study measured the effect of the blue ocean strategy dimensions (Eliminate, Reduce, Raise, Create) on competitive advantage. This study intended to examine how these strategies have helped in creating competitive advantage as well as addressing transportation challenges. A literature review of impact of blue ocean strategy on organizational performance has been a backbone in creating a strong theoretical foundation for this study. The study methodology has used a quantitative approach. The quantitative approach is descriptive in nature of the results obtained from secondary data sources. This study has conclusively found that to win customer satisfaction, certain important factors such as application functionality and usefulness of the ride hailing service has to be attained. The study went further to understand the underlying strategy that has influenced uber a ride hailing service provider in India to attain its competitive advantage. This study concluded that a mix of cost leadership and product differentiation strategies (that is focus strategy) together with technology has made a strong impact in increasing their competitive advantage. The study recommends ride hailing services to accept the improvements of communication channels, the need for ongoing training of their contractors and staff, and the need to be aware of the government rules and regulations.