Blue Ocean Strategy as a Solution to New Entrants in Higher Educational Industry

Abstract

This study was conducted to formulate a business strategy for JR Law College as a new entrant to the higher education industry. However, Indonesia's higher educational industry was still dominated by public sectors and have a high entry barrier, thus the most suitable business strategy must be obtained to overcome these hurdles. The business strategy formulation was preceded by the analysis of external factors using PESTEL, internal factors using value chain analysis, and competitiveness analysis using competitors mapping, competitive analysis, and VRIO framework. Data was collected using literature study, questioners with quantitative and qualitative questions, and interviews with individuals, groups, and focus group discussions to the firm's stakeholders (management, employees, students, alumni of JR Law College) and potential customers. The study found that because of the firm limitation in the physical, human and financial resources, and many intangible assets as the firm competitive advantages, head-on competition is not suitable for the firm and blue ocean strategy as a competitor-free strategy by value innovation, is the most suitable business strategy for JR Law College. Thus, the blue ocean strategy can be used as a solution for new entrants in Indonesia's higher education industry.

Keywords: Blue Ocean strategy, Competitive analysis, Competitor mapping, Higher educational institution, New Entrant, PESTEL framework, Value chain analysis, VRIO framework