The Blue Ocean Strategy Analysis of Chrysanthemum Flower

Abstract

West Java as the central production of flower commodity in Indonesia is supported by 9 central districts, which Cianjur, one of the top three, contributes 53.67% of the West Java flower production. A high competition within the flower businesses result a growing issue for PT Alam Indah Bunga Nusantara (Alinda) as one of Chrysanthemum business leader in Cianjur. Thus, the company considers a more relevant strategy which makes this research aims on examining a) the competition factors, b) company's industrial situation, and c) different business strategy by using the Blue Ocean Strategy approach. Exploratory sequential mixed method was conducted. The analysis shows that PT Alinda need to reconstruct the market boundaries, consider new potential market through product differentiation. PT Alinda need to rebuild the consumer value by eliminate the payment negotiation service factor, reduce the product quality assurance factor, increase the order ease factor, and create a new business line such as offering flower arrangements and dried flower handicrafts. The third step of the strategy formulation aims to maximize strategy formulation for non-consumer markets. Furthermore, the Blue Ocean Strategy testing should be focused on the underperforming factors.

Adaptation of Blue Ocean Strategy in Increasing Business Markets

“…Blue Ocean Strategy is a strategy to get out of very tight competition by creating a market space with no competitors so that the word competition becomes irrelevant. The Blue Ocean Strategy leads us to search unexplored market spaces, creating new demand and opportunities (Henaulu, 2021;Nurunisa, 2021;Sirathatnararojana, 2021).…”