Professional Documents
Culture Documents
* Blue
ocean vs
Competiti
ve
Andrew Burke
Holds the Bettany Chair and is the founding Director of the
Bettany Centre for Entrepreneurship
He is a Visiting Professor at the Anderson School of
Management, UCLA, USA. He was a Research Professor at the
Max Planck Institute for Economics,
*About the
Roy Thurik
Professor of economics and entrepreneurship,Erasmus School of
Economics, Erasmus University Rotterdam
Professor of entrepreneurship and small firms,Faculty of Economics
and Business Administration, Free University Amsterdam
Directeur de la recherche,Montpellier Business School, France
Sixthlargest
economy
in the
eurozone
Stable industry
relations
Moderate
unemployment
Important European
transportation hub.
Industrail
Activity
Food procesing
Chemicals
Petroleum refining
Electrical machinery
* Netherlands economic
Source
http://www.indexmundi.com/netherlands/economy_profile.html
profile
*Retailing in
Netherlands
Internet retailing
industry
continues to grow
developing a very
healthy
performance.
Internet retailing continues
to have major impact
Slow recovery of
the economy
therefore the
consumers
remain hesitant
to spend.
This has negative
influence on the
retail industry
and in some
cases decided to
postpone major
purchases.
Source:
http://www.euromonitor.com/retailing-inthe-netherlands/report
Small
independent
retailers are
often pushed out
by the major
chains, as these
chains have
more resources
to fund
innovation and
are better able
to weather the
economic storm.
Major chains dominate retailing
at expense of independents
Durable goods in
particular are
easy to ship, and
it is also very
easy for
consumers to
compare prices
online before
making a
purchase.
*Theory
Theorem
1
Theorem
2
*Theorems
Theorem
3
Theorem
4
*Theorems 1 & 2
*Control variables.
*Long range relationship between average
profits and the number of firms.
*Model
Specification
*Theorem 3 & 4
*Correction variables.
*Existence and speed of an adjustment
process.
Endogenous
Variable
-Growth of
average profit per
firm and growth of
number of firms.
Exogenous
Variable
- Can be shown in
results.
*The Netherlands
*41 shop types
*1980 2000
*Combines variables from two major sources:
*Dutch Central Registration Office (CRK)
*Bedrijfssignaleringssystem (panel of independet
Dutch retailers)
*Paloma
*Victoria
*Discussion
Managers choose between
BOS & CS
Depending the results and
funding
TESTABLE ASSUMPTIONS
1. Prediction that the
competition can be made
irrelevant
2. Belief that there are
sufficient Blue Oceans
*Schumpeter
recast
* Firms are less concerned about price competition and
more focused on innovation as a way to create
advantages in terms of products features, valued by
consumers.
* One can have innovation without the competitive
battled associated with creative destruction.
* Innovative managers can ignore competitors.
*Regarding
Innovation
*Different types
Value of
Innovation
is the
primary
goal
Exploit
untapped
markets*
Certain
amount of
imitation
COEXISTANCE
short with
long terms
*Conclusion
*Final QUOTE