The blue ocean strategy of Yellow Tail in US market

The following example demonstrates the success of applying the blue ocean strategy of Casella when launching Yellow Tail Wines in US market in 2000 (Kim and Mauborgne, 2007). Casella Family Brands is a family-owned wine company based in Australia. Before entering to the US market, the

Analytical tools and principles of formulating and implementing blue ocean strategy

Kim and Mauborgne (2005) have developed three tools (Strategic Canvas, Four Forces Frame, Eliminate-Reduce-Raise-Create Grid) and six principles for formulating and implementing blue ocean strategy of the firm (Principle 1 - Reconstruct market boundaries; Principle 2 - Focus on the big picture, not the numbers; Principle

Blue Ocean Strategy: Review and Summary of main contents

The Blue ocean strategy was developed by W. Chan Kim and Renée Mauborgne in their research in 2005. By analyzing 150 business strategies during over 100 years in 30 different industrial sectors, Kim and Mauborgne (2005) propose that firms succeed not because of fighting with their

Ansoff Matrix: Overview, Business Strategies and Practical Examples

The Ansoff matrix or Market Product development matrix, or market product matrix was developed by a famous researcher – Igor Ansoff in 1975. Until now, The Ansoff matrix has been used as a strategic planning tool for revenue growth at firms’ different market segments; thereby facilitating

The Resource-Based Process of Strategy Formulation

This article introduce a practical process of resource-based approach to strategy formulation, that includes: (i) analyzing the firm’s resource-base; (ii) appraising the firm’s capabilities; (iii) analyzing the profit-earning potential of firm’s resources and capabilities; (iv) selecting a strategy; and (v) extending and upgrading the firm’s pool

VRIN model or VRIO framework of Sustained Competitive Advantage of the Firm

We review the main contents of the VRIN model or VRIO framework, developed from the research of Barney, published in Journal of Management in 1991. This framework focuses on the attributes of resources that allow firm generating its sustainable competitive advantage. Four attributes of such resources

Scanning Business EnvironmentSee all

Strategy FormulationSee all

Startup: definition and potential evaluation
03/08/2019

“A Startup is a team of entrepreneurial talent developing new innovations, in identifiable and investable form, in progress to validate and capture the value of

Entrepreneurship: Characteristics, Importance, Types, and Functions of Entrepreneurship
03/08/2019

The word “entrepreneur” is derived from the French verb enterprendre, which means ‘to undertake’. This refers to those who “undertake” the risk of new enterprises.

The Growth of firms: objectives, process and types
05/12/2018

Firms grow in order to achieve their objectives, including increasing sales, maximising profits or increasing market share. Firms grow in two ways; by internal expansion

Office Management: definition, types, process, jobs and best practices
09/02/2018

Office management is a profession involving the design, implementation, evaluation, and maintenance of the process of work within an office or other organization, in order to sustain and improve efficiency and productivity. It is

Corporate accounting: definition, functions and branches
04/02/2018

Definition and principles of corporate accounting Corporate accounting is a process, which systematically and comprehensively records business events and transactions, and translate it into the

Stock market: functioning and investments
28/01/2018

The stock market refers to public markets that exist for issuing, buying, and selling stocks that trade on a stock exchange or over-the-counter. Stocks, also

What is Corporate Finance? Fundamentals, Principles and Features
16/01/2018

Corporate finance refers to activities and transactions related to raising capital for the creation, development and acquisition of a business. It is directly related to

Management Information System
15/01/2018

Management Information System (MIS) is the study of people, technology, organizations, and the relationships among them. MIS professionals help firms realize maximum benefit from investment

Supply Chain and Supply Chain Management
08/01/2018

A supply chain is a network between a company and its suppliers to produce and distribute a specific product to the final buyer. This network

Logistics Management: meaning, functions, importance, process and best practices
08/01/2018

Logistics refers to the overall process of managing how resources are acquired, stored, and transported to their final destination. Logistics management involves identifying prospective distributors

Enterprise Project Management: meaning, benefits, process and best practices
08/01/2018

Traditional project management is the process of leading the work of a team to achieve goals and meet success criteria at a specified time. Enterprise project

E-commerce Business: How to Build, Launch, and Grow a Profitable Online Store
07/01/2018

E-commerce (also known as electronic commerce) Business is the process of buying and selling of products or services, making money transfers, and transferring data over

How to Start an Import Export Business
06/01/2018

Import export businesses can be very profitable in the long run. And the good news is that it doesn’t take much to get started in

International Business – Meaning, Process, Types & Factors
05/01/2018

International business refers to the trade of goods, services, technology, capital and/or knowledge across national borders and at a global or transnational scale. It involves cross-border transactions of goods and services

Production Management : Definition, Function and Scope
04/01/2018

Production Management, also called operations management, refers to the application of management principles to the production function in a factory. In other words, it involves

Quality Management – Understanding how does it improve firm performance
04/01/2018

Quality management is a recent phenomenon but important for an organization. Civilizations that supported the arts and crafts allowed clients to choose goods meeting higher

Retail Management: Definition, Processes, Best Practices
03/01/2018

Retail Management is the process which helps the customers to procure the desired merchandise form the retail stores for their personal use. It includes all

Sales Management: Meaning, Objectives, Functions, Scope, Process, Determinants, Tools and Other Details
03/01/2018

Sales management is a business discipline which is focused on the practical application of sales techniques and the management of a firm’s sales operations. It is an important business function as net

What is Corporate Branding and How is it done?
13/12/2017

Corporate branding refers to the practice of promoting the brand name of a corporate entity, as opposed to specific products or services. The activities and thinking that go

Marketing and Corporate Branding
13/12/2017

Corporate Marketing refers to activities a company undertakes to promote the buying or selling of a product, service, or good. It is one of the

Strategy Implementation, Evaluation and ControlSee all

Management ScienceSee all

Corporate Management Science: scope and main contents
13/12/2018

Corporate management science is the broad interdisciplinary study of problem solving and decision making in human organizations, with strong links to management, economics, business, engineering, management consulting, and other fields. It uses various scientific research-based principles, strategies, and analytical methods including mathematical modeling, statistics and numerical algorithms to improve an

MicroeconomicsSee all

Microeconomics: Introduction to Supply and Demand
13/02/2018

Microeconomics (from Greek prefix mikro- meaning “small” + economics) is a branch of economics that studies the behavior of individuals and firms in making decisions regarding the allocation of scarce resources and the interactions among these individuals and firms. One goal of microeconomics is to analyze the market mechanisms that establish relative prices among goods and services and

Theories of the firmSee all

Definition of Theory of the Firm
05/02/2019

By definition, a theory of the firm is an analysis of the behavior of companies that examine inputs, production methods, output and prices. This is a microeconomic concept that states that a firm exists and make decisions to maximize profits by creating a gap between revenue and costs. The first elementary examination

Systems Theory
04/02/2019

Systems theory is the interdisciplinary study of systems. A system is a cohesive group of interrelated and interdependent parts which can be natural or human-made. Every system is bounded by space and

Organizational learning theory
04/02/2019

Organizational learning theory states that, in order to be competitive in a changing environment, organizations must change their goals and actions to reach those goals.

Hyper-competition theory
04/02/2019

The hyper-competition theory analyzes the rapid and dynamic competition characterized by unsustainable advantage. It is the condition of rapid escalation of competition based on price-quality

Resource-based theory
04/02/2019

According to resource-based theory, organizations that own “strategic resources” have important competitive advantages over organizations that do not. Some resources, such as cash and trucks,

Transaction Cost Economics
04/02/2019

In transaction cost economics and related disciplines, a transaction cost is a cost incurred in making an economic exchange. A number of different kinds of

Theory of Organizational structure
04/02/2019

An organizational structure defines how activities such as task allocation, coordination, and supervision are directed toward the achievement of organizational aims. According to the Theory of Organizational structure, organizational

Theory of Organizational Power
04/02/2019

Max Weber (1947) in his classical organization theory exemplified power in an organization through the process of control. Weber related authority to legitimacy, implying that

Decision Theory
04/02/2019

Decision theory (or the theory of choice not to be confused with choice theory) is the study of an agent’s choices. Decision theory can be broken into two branches: normative one,

Agency Theory
04/02/2019

Agency theory is a principle that is used to explain and resolve issues in the relationship between business principals and their agents. Most commonly, that

Theory of the Visible Hand
04/02/2019

The theory of the visible hand of Alfred D. Chandler determined that it was not the invisible hand of the market that determined corporate effectiveness

Theory of Competitive Advantage
04/02/2019

Michael Porter proposed the theory of competitive advantage in 1985. The competitive advantage theory suggests that states and businesses should pursue policies that create high-quality

Evolutionary Theory of the Firm
04/02/2019

Nelson and Winter argue that an evolutionary theory of organization is a superior description of firm behavior than orthodox views around optimization and that routines

Organizational Ecology Theory
04/02/2019

Organizational ecology theory examines how organizational populations change and develop over time through stages of founding, growth, transformation, decline, and death (Hannan & Freeman, 1977,

Behavioral theory of the firm
04/02/2019

The behavioral theory of the firm first appeared in the 1963 book A Behavioral Theory of the Firm by Richard M. Cyert and James G. March. The work

Contingency Theory
04/02/2019

A contingency theory is a theory of the firm that claims that there is no best way to organize a corporation, to lead a company, or

Institutional Theory
04/02/2019

In sociology and organizational studies, institutional theory is a theory on the deeper and more resilient aspects of social structure. It considers the processes by which structures, including schemes, rules, norms, and

Resource dependence theory
03/02/2019

Resource dependence theory (RDT) is the study of how the external resources of organizations affect the behavior of the organization. The procurement of external resources

Property Rights Theory
03/02/2019

The property rights approach to the theory of the firm based on the incomplete contracting paradigm that argue that in the real world, contracts are

The Invisible hand of Adam Smith
01/02/2019

The invisible hand describes the unintended social benefits of an individual’s self-interested actions, a concept that was first introduced by Adam Smith in The Theory of Moral Sentiments, written in