Applying the blue ocean strategy framework in various industries in Armenia

Abstract

This paper aims to analyze the implementation of the Blue Ocean Strategy (BOS) in the Armenian startup industry and propose a methodology to implement the Blue Ocean Strategy framework in various industries in Armenia. Applying BOS tools and frameworks to their business strategies will help Armenian companies to achieve high profitability, sustainable future growth, and industry expansion by creating new demand and reconstructing Armenian startup industry barriers. The research paper is constructed based on the sectoral overview of local and international cases. The Crowdfunding Formula (TCF) is an Armenian company, a strategy of which seems to be closest to the classic Blue Ocean Strategy framework. The extent to which the company’s strategy corresponds to the Blue Ocean Strategy is checked by using blue ocean theory, analytical tools, and frameworks such as three strategy propositions, value innovation, three tiers of non-customers, four actions framework, and strategy canvas. Additionally, in order to prove that the “Blue Ocean” that TCF has created delivers high value to its customers, the testimonials of their main customers are included. As a practitioner of the Blue Ocean Strategy, TCF’s performance is analyzed further to find out the implementation results of the strategy, in terms of the company’s growth and profitability. Since it is always possible that new blue oceans can create new red oceans in the future, the paper also estimates how much imitable TCF’s business strategy is through analyzing the three strategy propositions the company delivers internally and externally to the marketplace. The analysis is conducted by using the indicators of the industry features, the people culture, and the annual financial statements the company has. Based on the results, the paper will propose a methodology and guideline for other Armenian companies on how to use the Blue Ocean Strategy taking into account unique local market factors.