Applying Blue Ocean Strategy to the "Volume Zone" of Emerging Markets

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  • 新興国市場の「ボリュームゾーン」攻略とブルー・オーシャン戦略
  • シンコウコク シジョウ ノ ボリュームゾーン コウリャク ト ブルー オーシャン センリャク

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Abstract

Many sources have pointed out the declining international competitiveness of Japan and Japanese companies, and the need for Japanese companies to develop further growth strategies and restrengthen their international strategy. By examining two issues-one for Japanese companies to shift their targets in emerging markets from high-end to volume zone; and the other to develop a new strategy frame work-this paper aims to demonstrate the relative advantage of applying Blue Ocean Strategy. As the global market continues to grow, Japanese companies have been expanding their businesses in emerging markets, especially in East Asia where customers value the high quality of Japanese products. This paper argues that Japanese companies should not only target the high-end segment of emerging markets but also their volume zone by applying Innovator's dilemma. Otherwise, Japanese companies may eventually see themselves being kicked out even from the high-end market, when local competitors who play in the volume zone with low quality and drastically low prices jump into the main-stream market with improved quality while maintaining low prices. One of the key sources of Japanese companies' competitive advantage is their MONOZUKURI capability acquired through operational excellence. While Japanese companies need to redefine MONOZUKURI from a broader perspective, it is also essential for them to strengthen their ability to formulate effective strategies. It seems that existing strategy frameworks such as Positioning theory, Resource-based view, Diamond theory, and Innovator's dilemma may only provide limited solutions for Japanese companies to expand their businesses into the volume zone of emerging markets. This paper examines the case of a major industrial goods manufacturer to illustrate Blue Ocean strategy as a possible solution for Japanese companies to be successful in the volume zone of emerging markets.

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