journal of science and today's world volume 5, issue 1...1 | p a g e scholar journal journal of...

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Scholar Journal

Journal of Science and Today's World

Journal home page: http://www.journalsci.com

ISSN 2322-326X

2016, volume 5, issue 1, pages:1-9

Research Article

Studying the Effect of Blue Ocean Strategy Factors on Acquiring Competitive Advantage (Case Study: Pharma-

ceutical Companies of Lorestan and Markazi Provinces)

Ahmad Charmian, Shakiba Ahmadi*

Department of Management, Boroujerd Branch, Islamic Azad University, Boroujerd, Iran.

A R T I C L E I N F O A B S T R A C T

Article history:

Received 2 December 2015

Received in revised 18 December2015

Accepted 25January2016

Published 5February2016

Keywords:

blue ocean strategy factors, dimension

of competitive advantage acquiring,

pharmaceutical production companies

of Lorestan and Markazi provinces,

alternative industries, strategic groups

in industry, industrial functional or

emotional attractiveness for customer. *correspondence should be addressed

to Shakiba Ahmadi. Department of Management,

Boroujerd Branch, Islamic Azad University, Bor-

oujerd, Iran.

Tell: +98: 912-176-0763

Fax: +98

Email: [email protected]

This research aimed to study the effect of blue ocean strategy factors on acquiring competitive advantage in pharmaceutical companies of Loresatan and Markazi prov-inces in Iran. To achieve this goal, a sample volume consists of 90 managers and ex-perts of pharmaceutical companies in these two provinces using random sampling method were used. A survey with approved reliability of 0/932 unit, using study litera-ture and history was used, which its reliability was approved by professional special-ists. Findings of this descriptive-analytic research show that using ad hoc t test and linear simple regression, positive and linear effect of six factors: concerning alternative industries and existing strategic groups on industry, observing costumer’s chain, con-cerning complementary products and services, observing functional or emotional at-tractiveness for costumers, and observing the time (of search and study throughout the time), which relate to first principal of blue ocean strategy realization, was approved with 0/664 significance level on competitive advantage acquiring, and observing com-plementary products and time factors, both have most impact on companies’ competi-tive advantage acquiring with significance level of 0/562. Consequently, studying dif-ferent, distinct and changing needs of customers and establishing a framework to pro-vide required products and services which lead to create distinction between products of these companies against products of other pharmaceutical production companies. In the other hand, managers of these companies should form the future in best manner looking at time context and observing the past and potential provided value, plan for the company. © Copyright 2016 Ahmad Charmian et al. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

Introduction Today, competitive atmosphere in global economy has challenged organizations to achieve competitive place. Or-ganizations try in these critical situations to achieve success by getting superiority on their competitors. Therefore, most organizations spend vast majority of their resources, expens-es and time to acquire significant and novel characteristics to be able to survive in this narrow competitive extent, achieve improvement and profitability. Paradigm of competition in business atmosphere over-comes the minds of many recent global managers and man-agers consider getting advantage to their competitors and more existing demand market shares as the only way to their organization’s success. Traditional strategies stem from mili-tary models and their atmosphere has been resembled to Red Ocean. Red Ocean is defined in stable market place where new competitors are constantly entered into its limited space. To avoid this intense and face to face competition some com-panies create new market space with innovation which is

called blue ocean and there is no competition in it anymore [1]. Statement of the problem: In one hand, the problem which organizations are encoun-tered is existence of some weak points in current strategies of competition including lack of flexibility in marketing plans, inconsistency of some plans with conditions and require-ments of very complicated environment and decision making in uncertainty conditions. Especially in markets such as pro-duction and distribution of pharmaceuticals which is encoun-tered with environmental factors like sanctions and irration-al price increase of raw materials and coexistence of some medicines with famous international brands, and competi-tion context with national and international competitors is increasingly more serious. In the other hand, some current problems in organizations and companies are related to business and acquiring competitive advantage issue. For any

J. Sci. Today's World, 2016, volume 5, issue 1 ,pages: 1-9

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company in any industry, the success key is not to relay just on one source to acquire competitive advantage, but the best and most successful companies know about that they must look at competitive advantage from different points of view and utilize several resources to create competitive advantage [2]. Blue ocean strategy introduces new extent to acquire com-petitive advantage, success and profitability, emphasizing on non-competitive business environment. Now we should see that this strategy and its factors has what effects on acquiring competitive advantage and its dimensions and how can pharmaceutical producers and distributing companies could achieve competitive advantage using these factors? Importance and emergence of study: The importance of the study is that in recent world which was called knowledge based economy era, organizations need to think about subjects beyond the competition. Cur-rently, organizations should create Blue Ocean to acquire new progress and profitability opportunities [3]. The idea of Blue Ocean strategy, challenging competition, which has been the most important presuppose in strategic management field and also providing new strategies, introduces a new area to achieve success in business and services area [4]. Since pharmaceutical production companies are one of most critical sections in health and economy areas, and re-cently our country encounters to problems such as: small production measure of pharmaceutical companies, unipric-ing of US dollar and its effect on medical industry high re-search and development costs, drug smuggling and deprecia-tion of companies, it is necessary to study about internal and external competitive advantage, regarding environmental opportunities and challenges in this industry. Main purposes of the study: This study aimed to examine the effect of Blue Ocean strat-egy factors on acquiring competitive advantage in Lorestan and Markazi provinces pharmaceutical companies. In the other hand the aim of study is to express Blue Ocean factors including concerning alternative industries and existing stra-tegic groups in industry, observing costumer’s chain, regard-ing complementary products and services, observing func-tional or emotional attractiveness for costumers, and con-cerning time and also expressing the contexts and dimen-sions for acquiring competitive advantage including: capabil-ities, invisible assets, visible assets and influencing level of each dimensions of Blue Ocean strategy variable among pharmaceutical companies which is expected its results could be used theoretically by researchers and interested people and practically is used by planners and practitioners in pharmaceutical companies located in Lorestan and Marka-zi provinces. Main and partial hypothesis of study: According to theoretical framework of this study, the main hypothesis is that Blue Ocean strategy factors has significant impact on acquiring competitive advantage in pharmaceuti-cal production companies in both provinces, and also partial hypothesis are that each factors of Blue Ocean strategy in-cluding: concerning alternative industries and existing stra-tegic groups in industry, observing costumer chain, observ-ing complementary products and services, concerning func-

tional or emotional attractiveness for costumers, and observ-ing time, have significant effect on acquiring competitive ad-vantage in pharmaceutical companies in both provinces. Innovation of study: In this study, practical and functional experience in the context of emphasizing on acquiring competitive advantage in such critical and challenging industries like national pharmaceutical industry, is regarded as innovative aspect in this industry due to lack of research background. Theoretical framework and study background: Study literature: Blue Ocean: it is supposed in this study that global work and services areas consisted of two kinds of oceans: Blue Ocean and Red Ocean. Red Ocean demonstrates all industries which recently are exist and are known space of work and services areas. Blue Ocean are industries which are not exist at the moment, and in fact unknown work and services spac-es [1]. Table 1 compares Red Ocean with Blue Ocean.

Table1:comparing Blue Ocean and Red Ocean strategies [1]

Blue Oeac strategy Red Ocean strategy

Creation of space with

no competitor

Competion in existing market

place

Making competition

meaningless

Conquaring on competitors

Creation and taking new

resources

Benefiting from currebt demand

Breakinhg of value-cost

replace relation

Extablushment of value-cost

replace relation

To relate distinguish

strategy and cost

reduction

Selection of distinguish strategy

and cost reduction

Innovation of Blue Ocean strategy basics value: Value making innovation is the basis of Blue Ocean strategy and both emphasis equaly on value and innovation and challenges one of competition based strategies which is value orcost selection. In contrast to this belief, organizations which seek to create Blue Ocean are concerned either value strategy and low costs, simultanously. Companies, inspite of emphsising on challanging, are focused on competition ignorance. Value without innovation means focus on value making in large scale; something which improve value, but is not enough for company survival in market place. No innovative value means focus on value making in large scale; something which improves value but is not enough to survive entity, and even occur when entities converge innovation with productivity,price and cost. Value innovation is novel thinking method in planing and strategic execution area which leads to create Blue Ocean and competition withdrawal [1]. Restructuring of service and work areas boundaries and dimensions of Blue Ocean strategy:


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One of the most important prisipals of Blue Ocean strategy is restructuring of service and work boundaries to separate from competition and create Blue Ocean. This principal which is the first one of this strategy considers risk of seeking Blue Oceans thatmany organizations are conflicting with. The main challenge outside of examining all feasible options is to detect and determine entire persuading opportunities of Blue Ocean.It means thet provides simple and clear endivor to achieve strategic comperehensive and systematic trend which could leads to new areas of industry. These new areas occures using market boundary renewal. This boundary renewal practicaly is 6 strategies (or framework of 6 routs) which direct organization towars set of trade and durable ideas of Blue Ocean and are specified patterns to create Blue Ocean [1]. Route 1: searching and investigation among alternative industries: In a broad extent, an organization not only is in competition with other existing organizations and economic entities in its individual industry, but also competes with other organizations producingalternative services and products in different industries. Alternatives are broader and more extensive than substitutes. Products and services which have different shapes provide have same functional capability or main benefits, often be replcaed with each other. Alternatives are products and services which have different applications and shapes but are used for a single purpose [1]. Route 2: searching and studying strategic groups in industries: As creation of Blue Ocean is posibble searching anongst alternative industries, Blue Oceans could be opened in unknown spaces of work and services areas, investigating strategic groups. the term of strategic groupos is related to existing organizations inside an industry, which follow same strategy. Critical and basic strategic differneces in majority of industries are captured by minority strategic groups. strategic groups could be classified in a gobal hirarchy, generally in 2 dimensions: price and function. Every price improvement or jump leads to certain jump in some function dimensions [1]. Route 3: searching and investigating among clients chain: Competitores come to agree about a common certain definition of individuals who are called target customers, in many industries.however, there is a chain of customers who are involved in purchase decisions directly or indirectly. Buyers who pay for product or services, may be different comparing real consumers, and also there are significant numbers of influencers. However, these 3 groups may overlap and share with each other, but they are most often different. Looking this cielnt chain this is understandable that definition of value for each group is different. Often separate organizations in an industry target different parts of customers. For instance, pharmacutical industry is significantly focused on influencers group, physicians. Challanging the

wise and common insite of an industry about target clients couls leads to explore a Blue Ocean [1]. Route4:searching and investigating among complementary services: Little variety of products and services are produced orprovided in an industry. In majority of cases, other industries products and services infulence concerned product and services. Nonetheless, in many industries competitors are gathered around boundaries of providable products. Often, behind complementary products and services a unutilized value is hide. A simple method to determine this overal solution, is to think about that before/during and after using of your product or services what would be happen (Kim and Maborn, 2005). Route 5: searching and investigating among functional or emotional clients’ charactristics: Organizations which compete each other in single industry, not only tend to a fixed and agreed realm of products of services, but their common destination is based on one of functional of emotional charactristics of products of services. Some industries, mainly compete based on margin and profit calculations on price and function. Rest of industries mainly compete on emotional charactristics; the main character of these industries is to be emotional and exciting. organizations’ behavior influence on customers’ expectations in an booster circle. As time passes, industries become more functionalist with an function based attitude and industries which tend to be emotional and exciting, are amplified in their attitudes. It is not surprising that studying the situation of work and services areas, rarely new understanding is achieved about clients’ atractive factors [1]. Route 6: searcjing and investigating throughout the time: All industries depend on external trends and events which influnce significantly on their business and services during the time. Think about inreasing improvement of internet speed, or global revolutions toward environment support. These trends should be observed in correct perspective to specify how to create Blue Ocean via thinking about that. Most organizations when external events reveal, be adopted gradually and in some extent intractive and passive with these trends. Whether advance of new technologies, or constant regular changes are happened, managers tend to focus on prediction and planning of that individual trend. In the other word, they ask themselves a technology will be grow in which direction? How to adopt with technology changes? Do these trends lead us to success just like as a ladder? But Blue Ocean strategy could be rarely underestood predicting trends. Managers could shape their future looking time extent, in active manner and seeking a new Ocean [1]. Using these 6 events, market boundaries are restructured and companies exit Red Ocean and competition and create Blue Ocean. Establishing these principals using methodology, certain tools and frameworks, companies set competion meaningless for themselves and always will keep moving in Blue, quite and unlimited Ocean. Concept of competetive advantage:


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Competetive advantage is factor of combenition of factors which make organization absolutley more successful in a competetive environment and adversaries could not emulate that simply [5]. For each company in any industry, success key is not to rely merely on one source to achieve competetive advantage, but the best and most successful companies know that they should look on competitive advantage in new perspective and use different sources to create competetive advantage [2,3]. Company resources include tangible and intangible assets and also organizational capabilities which either is owned by the company or company control them and let company to use competetive strategies [6]. Research conceptual model: A)Blue Ocean strategy model: According to Kim and Maborn studies (2005), restructuring routes of market boundaries (related to first principal of realization of this strategy) in this model includes: observing alternative industries, concerning current strategic groups in industry, observing customer chain, concerning complementary products and services, observing functional of emotional atractives for customers and oberving the time (searching across the time). B)competitive advantage model: regarding resource based view and Barney model (1992) one of the most important ways of acquiring constant competitive advantage is to use key resources. Key resources are clasified in two groups: assets (tangible And intangible) and capabilities or valuable, rare, un-emulatable, and un-replacable charactristics, and organizing and adopting capabilities [7]. Accordingly, model of figure 1 could be observed which its dimensions are: figure 1: competitive advantage model [6].

Consequently, operational study model using 2 Blue Ocean strategy and competitive advantage models is as figure 2 Operational study model:

Review of inside and ouside studies: Chie chi chang (2010) in an study, Blue Ocean strategy versus Red Ocean: studying new methods of cell phone producers in China, stated that cellphone market is captured by international companies’ brands. However, Bandit cellphones (unbranded or with no famous brand) introduce new trade. This article followed Blue Ocean strategy by Kim and Maborn recommendation. This analysis could be a goodexample in innovation and strategy management. Torik, van Estle and Andrew Berk (2009) in article, Blue Ocean agaisnt 5 forces stated: this moodel defines that whenever being in a certain market is profitable, more service or productproviders enter in that market, till it comes to saturation point. In this situation, every providers stand in break-even point. Maborn and Kim (2007) in an study, how strategy forms structure, stated that organization managers commence strategy development procedure somehow with analyzing the industry or environment conditions who they are active in and evaluation weak points and ower points of adversary players. Then, they try to make prominent strategic situation for their organizations to be able to forestall from their adversaries creating competitve advantage. Tavalaei (2009) in an article, Blue Ocean strategy as an revolution in strategic management, stated about introduction and defining concept of Blue Ocean and investigating its role in organizations’ strategic change and revolution: value adding innovatation is a astrategy which reduces costs and concurrently more value is created for stockholders. Ghasemi et al (2009) stated in study, dynamic model for development of pharmaceutical and biologic products of manufacturing companies in Iran, active pharmaceutical companies in Iran could have place in market, relying on

Competitive advantage

Tangible assets Intangible assets capabilities

Dependent variable:

Blue Ocean strategy fac-tors

1.Attention to alterna-tive industries

2.Attention to exiting strategic groups in indus-try

3.Concerning costum-ers’ chain

4.Concerning comple-mentary products

5.Concerning function-al-emotional attractive-ness

6.Concerning the time

Dependant vari-ables:

competitive advantage

Dimensions of dependant vari-able:

1.Capabilities

2.Intangible assets

3.Tangible as-sets

Ef-

fect-

ef-

fect


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marketing capabilities comparing with constant competitive advantage which are resulted from marketing concepts such as appropriate marketing models. Methodology: This study is practical regarding porpuse and descriptive-surveying regarding execution. Statistical society includes all pharceutical company managers and experts in Lorestan and Markazi provinces. Overally, 90 managers and experts of pharmaceutical companies in Lorestan and Markazi provinces from 140 stuff of Exir company, 30 staff from total 40 staff of Behsa and 30 people from total 50 staff of Kherman were randomly selected. To study variables effects reagrding study literature and hypotheses, two questionaire were used under supervision of safisticated experts, which one is for Blue Ocean strategy and second is related to evaluating dependent variable, dimensions of acquiring competitive advantage. These two questionaire were investigated in the level of order evaluation based on Likhert spectrum in five level, very low scores, and very high scores, which their validity were approved by experts and their stability were approved based on Alpha Cronbakh coeficient which was calculated for entire questions 0/932 (table 1-3). Table 2: Alpha Cronbakh values

Also in statistical analyzing section, in descriptive statistics part (questions about identity and socail charatristics of respondant, including education, age and gender) despersive and central indices were used. In conclusive statistics part, first Kolmogrov-Smirnov test was used to determine normal distribution of data (if significance level of each variable be larger than 0/05 then distribution of that variable is normal), then based on the result, one way t-test was used to determine significance of eachvariable’s dimensions separatly (if t-test is negative it could be concluded whithout studying significance level that state of desired index is not appropeiate). Simple linear regression was used to test hypotheses (first significance test of entire regression model with ANOVA table and next significance level of each coeficients of independent variables should compare with coeficients table) and to compare companies, variance analysis in SPSS software was used. Findings: Descriptive and conlusive statistics results: After data collection it was seen that 7/22% of respondants are male. 6/7% have udergraduate, 65/6%

bachelor, 23/3% post graduate, and 4/4% pHd certificates. Age of 10% of respondants are under 25 years, 54/4% between 26 to 35 years, 30% between 36 to 45 years and 5/6% between 46 to 55 years. Economic activity background 25/6% Of respondants are under 5 years, 35/6% between 6 to 10 years, 23/3% between 11 to 15 years, 13/3% between 16 to 20 years, and 2/2% up to 20 years. Studying normality of dependant variable distribution: Distribution results using Kolmogrov-Smirnov with hypothesis: H0:data distribution of research variable is normal H1:data distribution of research variable is not normal table 3: normality test for variables

According to table 3: since signifance level in both variables are more than 0/05, H0 and normality of data distribution of these variables in studdied sample is confimed and normality condition of distribution of dependent variable is also recognized. Significance test of each dimensions (one way t-test): Table4:results of t-test for dimensions of Blue Ocean strategy in 3 companies

Significance test of dimensions of Blue Ocean strategy is shown in table 4 and significance test of competitive advantage dimensions attaced to the appendix, regarding mentioned conditions and above mentioned tables it culd be concluded that: in Exir company; for all Blue Ocean demensions which include attenstion to alternative

Variable Related

question

Alpha

Cronbakh

Coeficient

Blue Ocean strategy 1- 25 909/0

Competitive advantage 26- 37 868/0

Total questionare questions 1-37 932/0

variables Test Significance level

(Sig)

Blue Ocean strategy factors (independent variables)

070/0 200/0

Acquiring competitive advantage (dependent variable)

089/0 073/0

Kherman company Behsa company Exir company Compe

titive

advant

age

Sign

ifica

nce

leva

l

T

value

Me

an

Sign

ifica

nce

leve

l

T

value

me

an

Signi

fican

ce

level

T

value

Me

an

Dimen

ssion

001/0 737/3 49/3 000/0 813/8 63/3 894/0 134/0 01/3 Capabi

lities

000/0 199/4 71/3 000/0 700/6 45/3 054/0 006/2 20/3

Inta

ngible

assets

010/0 773/2 45/3 000/0 027/9 73/3 001/0 665/3 34/3

Tan

gible

assets


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industries, attention to existing strategic groups in industry, observing costumers’ chain, concerning complementary products/services, observing functional/emotional attractiveness for costumers and observing the time and dimension of capabilities related to change in competitive advantage variable, H0 hypothesis is confirmed. in the other word, related date to these dimensions was seen less than avarage and it could be said that these factors are exist in comapany. Other dimensions in other companies are also analyzied in this manner. Main study hypothesis test: Blue Ocean strategy factors have significant effect on acquiring competitive advantage in pharmaceutical companies of Lorestan and Markazi provinces.

No significant effect 0 = β : Ho

Significant effect 0 ≠ β :1 H

To test above hypothesis using simple linear regression, results of this test are shown in below table: Table 5: summary of regression model

model Multiple

regression coeficient

Determination coeficient

Regulated determination

coeficient

Index determinant

erro

1 664/0 440/0 434/0 43183/0

In table 5, in fact determination index is total changing percent which is located on x due to regression that is 0/440. Table 6: variance analyzing of regression model

model Sum of

squares

Degree

of

freedom (df)

Avarage

squares F Significance

level (sig)

1

Ression 919/11 1 919/11

139/99 999/9 Residual 019/19 88 189/9

Sum 311/19 89

From table 6 variance analyzing is used to study existance certainity of linear relation between dependent variable and independent variables. Statistical hypotheses significance test of totall regression model is:

H0 :No linear relation between two variables H1:Linear relation between two variables Since significance level of regression model is lower than supposed value 05/0=α, then H0 is rejected and linear relation between two variables is confirmed, and assumed regression model is significant.

Table 7: regression model coeficients

Regarding results oftable 5-4, due to smaller value of test significance level from 0/05, H1: significance impact of Blue Ocean strategy on acquiring competitive advantage is confirmed. according to column B values, equation of this hypothesis could be written as:

x 738/0 +043/1 =ŷ

In above table, standardized coeficients column beta and constant valye B show that Blue Ocean strategy factors have positive and direct impact on acquiring competitive advantage, meaning that for each uint change in variable 0/664 unit change in acquiring competitive advantage is occurred. Therefore, Blue Ocean strategy factors have significant impact on acquiring competitive advantage in pharmaceutical companies ofLorestan and Markazi provinces. Research Sub hypothesis test: To avoid text prolong, only regression coeficients table was illustrated for each sub hypothesis. H1: concerning alternative industries has significant influence on competetive advantage acquirment in pharmacutical productioncompanies of Lorestan andMarkazi provinces.

0 there is no significant impact = β : Ho

There is significant impact0 ≠ β :1 H

Table 8: coeficients of regression model

Model

Non standardized coeficients

Standardized

coeficients t

Significance

level (sig) B Column coeficient

error B Beta (β)

Constant 963/1 252/0 - 795/7 000/0

Concerning alternative industries

483/0 080/0 541/0 030/6 000/0

Regarding results of table 8, due to smaler value of significance level than 0/05, H1 hypothesis of having significant impact of concerning alternative industries on acquiring competetive advantage is confirmed and for each change unit of this variable, 0/541 unit change is created in acquiring competetive advantage. H2: observing existing strategic groups in industry has significant impact on acquiring competitive advantage in pharmacutical production companies of Lorestan and Markazi provinces.

Model

Non standardized coeficients

Standardized

coeficients t

Significance level

(sig)

B Index error of column B

Beta (β)

Constant 043/1 293/0 561/3 001/0

Blue Ocean strategy factors

738/0 089/0 664/0 320/8 000/0


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0 no significant impact = β : Ho

Significant effect0 ≠ β :1H


Model

Non standardized

coeficients Standardized

coeficients

t

Significa

ns

level

(sig) B

B column

benchmark

coeficient

error

Beta (β)

Constant 980/1 171/9 - 999/7 999/9

Observing existing

strategic groups in

industry 017/9 983/9 081/9 107/5 999/9

Regarding table 9 due to smaller value of test significance level from 0/05, H1: having sognificant influence of attention to strategic groups existing in industry on acquiring competitive advantage is confirmed. one unit change in this variable 0/481 change in acquiring competitive advantage is created. H3: observing costumers’ chain has significant effect on acquiring conmpetitive advantage in pharmaceutical producer companies of Lorestan and Markazi.

0 no significant effect = β : Ho

Significant effect0 ≠ β :1H


Model

Non standardized

coeficients

Standard

ized

coeficient t

Significa

nce level

(sig)

B Colunm coeficient

index error B Bet (β)

Constant 150/1 109/9 - 151/9 999/9

Observing costumers’

chain 375/9 975/9 098/9 979/0 999/9

Regarding results of table 10, due to smaller value of significance level from 0/05,H1:significant effect of concerning costumers’ chain on acquiring competitive advantage is confirmed. H4: attention to complementary products and services has significant impact on acquiring competitive advantage in pharmaceutical companies of Lorestan and Markazi provinces.

0 no significant effect = β: Ho

Significant effect 9 ≠ β :1H


Regarding table 11, H1 is confirmed and each unit change in variabe, changes 0/562 unit in acquiring competitive advantage. H5: observing functunal and emotional attractiveness for costumers on acquiring competitive advantage in pharmaceutical companies in Lorestan and Markazi provices has significant impact.

0 no significant impact = β :Ho

Significant impact 9 ≠ β :1H

Table 12: regression model coeficients

Model

Non standardized coefiecients

Standarduzed

coeficient t

Significance level

(sig) B

Index error of coeficients column B

Beta (β)

Constant 104/2 279/0 - 551/7 000/0

Observing functunal/emotional attractiveness for

costumers

414/0 084/0 465/0 923/4 000/0

Regarding table 12, H1: significant effect of attention to functional/emotional attractiveness for costumers on acquiring competitive advantage is confirmed. each unit change in this variable change 0/465 unit in acquiring competitive advantage variable.

H6: observing the time has significant effect on acquiring compaetitive advantage for pharmaceutical companies on Lorestan and Markazi provinces.

0 no significant effect = β :Ho

Significant effect 9 ≠ β :1H

Table 13: coefcients of regression model

Model

Non standardized


coeficient t

Significance

level (sig) B Index error

of column B Beta (β)

Constant 999/1 108/9 - 999/7 999/9

Attention to

complementary

products 030/9 998/9 591/9 399/9 999/9

Model

Non standardized


coeficient t

Significant

leval

(sig) B

Index error of

coeficients

column B Beta (β)

Constant 797/1 199/9 - 597/9 999/9

Observing the

time 511/9 989/9 591/9 397/9 999/9


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Regqading table 13, H1 is confirmed and for each unit change in this variable, 0/562 unit change is created in acquiring competitive advantage variable. Discussion and conclusion: Due to original and innovative nature of Blue Ocean strate-

gy subject in inside and outside scientific literature, also not

studying this variable with a variable such as competitive

advantage in different industries including pharmaceutical

industry, in previous studies there was no similar or adverse

result found, to analyze and interfere. Confirming Chan Kim

and Renee Maborn, when businesses are involved in direct

conflict, the battlefield is crowd and every involved party are

faced to market share and growth decline and profit de-

crease, just like situation is seen in pharmaceutical industry

of these two provinces. Blue Ocean strategy is creating busi-

ness in such context that did not exist before. To recognize

these contexts, macro level watching is essential and compa-

nies should create innovative value for their costumers,

which this innovative method is not something except ad-

vanced product with economic advantage. In addition, con-

firming Ghasemi et al. study which emphasized on marketing

capabilities in place of acquiring competitive advantage, it is

stated that in pharmaceutical industry recent environmental

changes which change in government policies and regula-

tions are most important ones, created opportunities to ac-

quire competitive advantage and make distinguish to survive

and conflicting with changing environmental conditions. Al-

so, confirming every main and sub hypothesis of the study

shows that pharmaceutical companies of these two provinces

should concern entire dimensions of Blue Ocean strategy to

acquire competitive advantage. Confirming hypothesis of

influence of Blue Ocean factors on acquiring competitive ad-

vantage, managers of these companies should act with a

knowledgeable view to determine their competitive strate-

gies, being aware about environment information, and make

established and productive the 6 main approaches of Blue

Ocean strategy, providing a context to achieve competitive

advantage in their target market.

Confirming effect of attention to alternative industries, the-

se pharmaceutical companies should investigate problems of

classic and traditional methods of current industry, with

sampling from practical and appropriate for environment

and situation methods of province and area companies, to be

able to choose alternative efficient and effective strategy

proportional to conditions and environment of entities, and

execute it to redefine their industry with novel and different

style than others.

They also could detect key factors, which lead them to

trade off alternative industries, using extensive field re-

searches and enforcing costumer’s relationship, and attract

more customers, establishing these factors in their plan.

Confirming impact of attention to current strategic groups in

industry, focusing on their own place among all manufactur-

ing, importing and distributing pharmaceutical companies,

be informed about used strategies by them, using strategies

and plans of successful companies, creating strategic connec-

tion and cooperation with others, is essential.

In the other hand, confirming the effect of attention to cos-

tumers’ chain shows that these companies should try to es-

tablish and maintain connection with end buyers, end con-

sumers of company’s products, and satisfy their needs as

well, in addition to focus on influencing group of this indus-

try. Furthermore, confirming effect of attention to comple-

mentary products and services, these companies should

evaluate needs about that before; during and after product

usage what would be happen and concern everything that

helps to improve product function. Confirming effect of ob-

serving product functional-emotional attractiveness for cos-

tumers, companies should observe clients’ income level and

purchase power in decisions such as pricing and determining

services and product’s price increase fees to avoid unreason-

able price increase, which leads to defeat costumer’s loyalty

that causes to leave purchase in future.

They also could delete or decrease some additional product

characteristics, which do not enhance functional product ca-

pability. Confirming effect of attention to the time shows that

future oriented and past oriented view are very effective to

satisfy targets and profitability improvement of companies.

Therefore, managers should form the future in the best man-

ner, looking time extent, and plan to potential value that may

be provide in the future, looking that past and provided value

for products. In addition, in their planning and decision mak-

ing process, concern all environmental factors, so that do not

need fundamental changes in plans and targets in short time. Recommendations for future studies:

1-Using another principlas of this strategy, other models could be used for Blue Ocean in differnet studies.

2-using other methods except questionaire 3-comparitive study of influence of Blue Ocean on

achieving competetive advantage in other trade areas and industries of the state.

References

[1] Kim, W. C., R. Mauborgne, et al. (2005). Blue ocean strategy: How to create uncontested market space and make the competition irrelevant. Harvard Business School Press.

[2]. Stalk george, jr.(1998) time-the next source of competi-tive advantage, harvard business review, july-august,pp:41-51.

[3]. Sadri, Golnaz & Lees Brian (2001), Developing corpo-rate culture as a competitive advantage, Journal of Manage-ment Development; Volume: 20 Issue: 10.

- [4]. Debi S. Saini. (2006). Book Reviews: Blue Ocean Strategy: How to Create Uncontested Market Space and Make Competition Irrelevant. Vikalpa, Vol 31, No 3, July- September 2006.

- [5]. Barney, J.B (1992), Firm Resources and Sustained Competitive Advantage", Journal of Management, Vol.17, No.1.

[6]. Hill, c.w.l, Jones, G.R, (1995), Strategic Management Theory, lst ed, Houghton Mifflin Company, U.S.A.


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- [7]. Clulow, val (2003), the resource based view and sustainable competitive advantages: the come of a financial services firm, journal of European industrial training, vol.27. No 5.

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