Effect of Blue Ocean Strategy on the Performance of Telecommunication Firms in South East Nigeria

Abstract

The objectives of the study were to; examine the effect of blue ocean strategy application on the market share in the Nigerian telecommunication firms and identify the impact of blue ocean strategy on customer satisfaction in the Nigerian telecommunication industry. The study adopted cross-sectional descriptive research design. Data was obtained from 225 respondents working in telecommunication firms in South East Region of Nigeria through the use of a questionnaire. The data collected for the study were presented in tables comprising of frequency, percentage, mean and standard deviation, while the hypotheses were tested using simple linear regression with the aid of statistical package for social sciences (IBM, SPSS version 23). The findings revealed that blue ocean strategy has a positive significant effect on market share in the Nigerian telecommunication industry (r = .680^a; F = 223.971; T = 14.966; p - .000) and that blue ocean strategy has a positive significant effect on customer satisfaction in Nigerian telecommunication organizations (r = 727; F = 292.079; T = 17.090; p - .000). It was concluded that the formulation of blue ocean strategy is quite an accomplishment and dynamic process as it affects, market shares and customer satisfaction. It was recommended that management of various telecommunication firms should strive to develop innovative products and services that are beyond the traditionally known services in order to improve their profitability and as a matter of urgency, innovatively deliver cutting edge services that can beat their competitors so as to attract more customers.

Keywords: Blue Ocean, Strategy, Performance, Telecommunication firms, South East Nigeria