The findings contribute to the strategic, finance, and supply chain disciplines, especially for strategy formulation and development, thereby providing a new perspective on improving the strategic planning process in terms of corporate and line-of-business strategy.Ĭontemporary trends in the area of business strategy have shown an inclination toward searching new markets and creating new demands. All the information was public financial data for U.S.-based automobile manufacturers. Securities and Exchange Commission’s 10-k filings database and Finance. The purpose of the study is to determine if periods of abnormal returns occur passed the 24-month not seen in fast-clockspeed industries and to answer the research question: Is there a significant increase in the value of a company after the introduction of a product that meets the blue ocean strategy framework? The conceptual framework thus identifies companies whose leaders have introduced products that meet the blue ocean strategy criteria and considers the corresponding events by correlating the price of the publicly traded companies’ security to that of the market index, while also providing insight into the abnormal returns observed using the event study methodologies market model approach. The study uses a longitudinal event methodology to measure abnormal security returns over the period observed, and to determine if the abnormal returns extend beyond the 24-month period observed in fast-clockspeed industries, while also observing if the products measured align with a medium-clockspeed industry in the automobile segment. The study builds on companies whose leaders are pursuing blue ocean strategies to introduce products and correlate the speed at which industries evolve products, processes, and organizational variables to the time duration these blue ocean strategy products will remain uncontested. The primary business problem stems from large investments in product introduction whose payoff barely meets, or in some cases does not meet, the needed duration of time required to get a significant return on investment. The focus of this study is the management challenges associated with introducing products in industries where the evolution of product life cycles is relatively fast.
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