Situational Value Innovation Strategy: The Case of the Coffee Drinking Market in South Korea

Our study demonstrates how the context-dependent three-factor approach, combined with the blue ocean strategy framework, can improve product and service innovations. We provide a simple approach and procedure for creating value beyond the existing market boundaries. We show that the critical strategic elements of the coffee drinking market in South Korea differ across situations in which the customers drink coffee, such as at home, at work, and on the street. Thus, we develop situational value innovation or blue ocean strategies, depending on each context. Our study may help executives avoid strategic mistakes, such as overshooting and ignoring certain strategic dimensions. Further, in developing a survey-based situational value innovation strategy, our study may help executives predict a “Red Ocean” and manage zero-sum competition.