Making a Blue Ocean Shift: Tata Ace captures a new market

Abstract

Purpose

This paper aims to understand how organizations can apply the Blue Ocean Shift process to achieve profitable growth and make competition irrelevant.

Design/methodology/approach

This paper uses a case study approach. Based on interaction with the senior management of an organization and secondary sources, this paper presents an application of the Blue Ocean Shift process on a strategic move by an organization to achieve value innovation.

Findings

This paper presents a case of how Tata Motors Ltd. applied Blue Ocean Shift process to come up with the product Tata Ace, which achieved value innovation while making competition irrelevant. From assessing the current state of play to forming a motivated team, working with suppliers and fulfilling the needs of the non-customers and unhappy existing users, they were able to create a strong position for themselves.

Practical implications

Blue Ocean Strategy, through a process defined as Blue Ocean Shift, can be applied by organizations to achieve value innovation, change market boundaries and achieve profitable growth through their strategic offerings. It can help them get out of “red oceans” which may be a way to view the existing hypercompetitive world.

Originality/value

This paper contributes to the application of the Blue Ocean Shift process in the Indian context while studying a strategic move of an Indian firm. It showcases an example of how large Indian organizations can successfully apply the process to achieve value innovation.

Citation

Kulkarni, B. and Sivaraman, V. (2020), "Making a Blue Ocean Shift: Tata Ace captures a new market", Journal of Business Strategy, Vol. 41 No. 4, pp. 11-20. https://doi.org/10.1108/JBS-03-2019-0057