Abstract:
Organizations struggled to find out their competitive edge among the others
in order to sustain in their business throughout the civilization. They engaged
in number of strategies similar to their competitors which was known as Red
Ocean Strategies (ROS). However, it was a difficult task for them to achieve the
sustainable competitive advantages with the huge competition. At the same time
some companies focused on separate section of customers with innovative strategies
of the same product in order to remain in the business with accomplishment which
was identified as Blue Ocean Strategies (BOS). The objective of this study is to
analyze the influence of BOS over the business performance of banking industry.
The conceptual framework which has been incorporated in the study is a further
development of Michael Porter’s Value Chain model. The study concerned on
both qualitative and quantitative methods. Secondary data gathered from listed
banks were questioned in interviews to identify the real application of BOS. More
specifically, the study found that there is a positive relationship between BOS and
business performance of listed banks in Sri Lanka. However, it was revealed that
the impact for the non-financial performance is considerably high.
