Competitive strategy or value innovation introduction from the last few decades, the emphasis of strategy has been on the 'competitive advantage' (as laid down by michel porter in 1980)this is evident from the cut throat competition amongst the various industrial sectors, be it at domestic or global level. Creating an innovation strategy involves determining how innovation will create value for potential customers, how the company will capture that value, and which types of innovation to pursue.
Porter's generic competitive strategies (ways of competing) a firm's relative position within its industry determines whether a firm's profitability is above or below the industry average the fundamental basis of above average profitability in the long run is sustainable competitive advantage. The cornerstone of blue ocean strategy is value innovation, a concept originally outlined in kim & mauborgne's 1997 article value innovation - the strategic logic of high growth funky business explained that competitive strategy is the route to nowhere.
An innovation strategy provides guidance in business decisions on how resources are to be used to meet a firm’s objectives for innovation and thereby deliver value and build a competitive advantage.
While blue ocean strategy emphasis the value innovation and claim the company could break the traditional trade-off and get both competitive advantages, which is quite suitable for current competitive situations around the world (kim & mauborgne, 2005. Use value innovation to create competitive advantages in blue ocean value innovation to create competitive advantages and get market leader position we use a this chapter is to describe the theory of competitive strategy, value innovation and blue ocean strategy, which is the basic theory of this study.
Indeed, one hardly speaks of strategy without drawing on the vocabulary of competition — competitive strategy, competitive benchmarking, competitive advantages, outperforming the competition in fact, most strategic prescriptions merely redefine the ways companies build advantages over the competition.
Instead of following the cliche notion of competitive advantage, the present day firms have gathered a new perspective of profit making i e ‘value innovation. From the last few decades, the emphasis of strategy has been on the ‘competitive advantage’ (as laid down by michel porter in 1980) this is evident from the cut throat competition amongst the various industrial sectors, be it at domestic or global level every company or firm in their respective industries strives hard to grab [. Conventional strategic logic and value innovation differ along the basic dimensions of strategy many companies take their industry’s conditions as given value innovators don’t.