How Green Ocean Strategy is Helping in Better Customer Retention and Customer Loyalty?
Chapter 1: Conceptual framework
The market is growing with the increase in competitions, it has assessed that the customers has become more familiar environmental friendly product and services. Most of the business entities have becoming more conscious in respect of environmental attributes and elements to be engaged in the p-production of their goods and services (Mei, 2013). The green ocean strategy is adopted by the business entities for creating business opportunities by contributions in environmental developments. As per the assessment, Green ocean strategy solutions provide new conceptions for segmentations, market focusing, business territory evaluations with sustainable development and innovations (Green, 2010). In then analysis, the strategic approach is focused on transforming determinations of business more to customer service than product orientations. It helps to engage sustainable innovations and development in the product and services so that nit can able to enhance the market share of business organizations. Sustainability, innovations and design enhances the product durability quality and performance by which the organisations able to create proper customer base and loyalty. As per the analysis the implications of the green ocean strategies the market analysis and segmentations are based on the customer needs and requirements.
The research proposal is based on providing a critical and detailed analysis on the impact of green ocean strategies to create proper customer retention and customer loyalty for the UK based company Lenovo. With the engagement of research proposal, a proper learning and knowledge on the impact of green ocean strategy can be evaluated for enhancing the customer base and customer loyalty for the particular product or service.
1.2 Aims and objectives
As per the selected topic, the aim of the research will be to focus and analyze elements and factors of green ocean strategy that can enhance the customer retention and customer loyalty of a business organization. Then particular topic will engage a brief study on relationships within the strategic approach of Green ocean and elements that enhance the customer retention and loyalty. The researcher has selected a case study of multinational computer technology and electronic gadget manufacturing comp-any Lenovo operating in United Kingdom. The engagement of different model, theories and approaches help to define the extent of Green Ocean strategy to enhance the customer base and customer loyalty for the company. For further penetration of the research, researcher based on the aim of the study has framed the objectives. The objectives for the research study have been framed as following:
- To analyze the role of Green Ocean strategy in increasing innovations and development of product or services
- To analyze the significance of Green ocean strategy in Lenovo
- To investigate the element of green ocean strategy in increasing customer loyalty of Lenovo
- To evaluate relationship between customer retention and Green ocean strategy of Lenovo
1.3 Research Question
Based on the aims and objectives the researches questions are prepared to make more detailed analysis and evaluations on the research topic are framed as following:
- What is the role of Green ocean strategy to increase innovations and development of the product and services?
- What is the significance and use of Green oceans strategy in business operations of Lenovo?
- How elements of Green Ocean strategy can increase customer loyalty of Lenovo?
- What is the relationship between customer retention and green ocean strategy of Lenovo?
- How factors of green ocean strategy can increase customer retentions in Lenovo?
1.4 Rationale of the study
As per the rationale of the study, the topic has been selected to analyses and evaluates the extent of impact of the Green Ocean strategy in increasing the customer loyalty and retentions. The Green ocean strategies is been used by most of the business entities to enhance high sustainable development and creativity in the product and services (Leavy, 2009). In the analysis, the strategy is more focused on the services quality and critical thinking on enhancing the customer base of business organizations. As per the assessment, with the engagement of this research study critical analysis and evaluations on the factors, approaches, conceptions and applications of Green Ocean strategy to be assessed (Taylor, 2013). It enhance knowledge and learning on the factors of this strategy increasing more quality based and sustainable service and impact of this sustainability and innovations can provide customer base and loyalty to a business organizations. Implications of the research help to evaluate the factors of this strategy hat create relationship and influence customer attaint ion towards the product and service been introduced by the company (Kerton et al. 2013). However, the study provide positive implications of the green ocean strategy thus will not cover the overall impact of particular strategic approach on the business operations and increasing customer base, retention and loyalty.
Chapter 2: Theoretical Framework
2.1 Theories of Customer retention and customer loyalty
As per the standardizations of service quality theory, the customer retention is based on the loyalty and satisfactions of the customer. The customer retentions are been evaluated and assessed by evaluating the quality and experience level of customers to repurchase the product by repeated times (Nili and Keramati, 2012). In the theoretical approach of standardized customer service, the customer retentions evaluators long term attachment possibilities of customers with the particular product or brand in the market place. In the model of customer retention, it is been formed by brand image, customer value, customer experiences, product or service quality and loyalty of the customers (Tsao, 2012).
Figure 1: Customer Retention
(Source: Morton, 2013, pp- 75)
In the other hand, the customer loyalty theory is based on believe and perceptions of the consumers on quality, benefits and features of the product and service been introduced by the business organizations in the market place. The analysis assess the loyalty of the customers are evaluated on the decision making procedure of the customers. As per the target market theory, the customer loyalty is based on the needs perceptions and expectations to be met by the organizations continuously (Olson, 2008).
2.2 Green ocean strategy
The Green Ocean Strategy evaluates the sustainability and innovations in the product to enhance its quality relevancy and presentations in the market place. In the analysis the scope of the strategic approach of green ocean providing and changing trend to the lifestyle that has been accepted by the customers (Mei, 2013). As per the analysis, the customers are more conscious and depend on the environmental friendly and healthy products leaving which is accepted by the market. The theory of sustainable growth and development of the business defines; green ocean strategy is able to create more value concern to product and customer service.
As per the analysis the implications of green ocean strategy drives the product orientations more towards providing sustainable service which create customer base and satisfaction level more efficiently (Kerton et al. 2013). In the analysis, the strategic approach of Green Ocean establishes a different and more critical targeting of the market. The implications of the green ocean strategy are based on the carbon emissions, environmental resource implications and minimizing pollutions. In other manner, the green ocean strategic approach creates proper corporate responsibility that enhances the customer attentions towards environmental friendly product introduced by the company (Nili and Keramati, 2012).
Figure 2: Elements of Green Ocean Strategy
(Source: Kerton et al. 2013, pp- 860)
2.3 Impact of Green ocean strategy
The red ocean strategic approach enhances proper competitive advantage and edge for the market and Blue Ocean provides innovations and creativity to product or service to enhance its quality and presentations (Taylor, 2013). The green ocean strategic approached is the hybrid of Red Ocean and blue ocean strategy. It engages competitions and innovations in the production make it more durable and sustainable in the market place. As per the analysis, the green ocean strategy provides competitive edge and creativity to the product that makes the product more service oriented and attractive to the customers (Morton, 2013). Implications of this strategic approach in the business decline the wastage and cost of product that help the company to maintain standard pricing of product as per customer perceptions.
The business entities able to provide more creative inventions in product or service with new technologies that are able to create opportunity of business in the market place (Olson, 2008). Innovations creativity and competitive advantage of the product create proper sustainability and durability formed by green ocean strategy. Implications of the strategic approach enhance the customer attraction, satisfaction and retentions with the product and services as consumer seek for innovative quality and standard price product in the market (Green, 2010).
Chapter 3: Methodological Framework
3.1 Research Strategy and methodology
The primary research data collection method is raw data collections from the participants on a particular research topic (McNiff and Whitehead, 2006). As per the analysis the primary data are been used to enhance practical information and data which focuses on the requirement and need of the study. In the other hand the secondary data is also used to gather theoretical conceptions and application to provide more better and clear understanding on the topic (Harrison and Reilly, 2011). In the particular research, the primary data sources were to be used for interaction with the customer and managers of Lenovo Group Limited. It will help to gather information as per the framed objectives of research.
Figure 3: Data collection sources and technique
(Source: Toloie-Eshlaghy et al. 2011, pp- 110)
The random sampling technique has been used to select 50 customers and 5 managers of Lenovo to gather information by sample questionnaire. In the analysis, qualitative data technique has been used to evaluate narrative and theoretical information from the managers of company (Saunders et al. 2006). In the other hand with the help to survey questionnaire, a statistical information been gathered from the customers of the company. In the research a mixed approach has been used developing qualitative and quantitative information on tureen ocean strategy impact on customer retention and loyalty.
3.2 Logistical and Ethical Considerations
As per the logistical considerations, the researcher wills appointments with the managers of Lenovo Group Limited United Kingdom and makes a telephonic interview to gather qualitative data on the topic. In relationsto the customers, an online interview via Facebook will be conducted with the distribution of sample questionnaire for gathering information on the research topic.
There are some basic ethical considerations to be adopted and maintained by the researcher while conducting the particular research study (Magilvy and Thomas, 2009). As per the assessment, the information gathered on the topic to be used for the research only and cannot be shared with third individuals not related to research. The respondents are not to be pressurized for providing responses on the questions designed by researcher (Truscott et al. 2010). The respondents information need to be confidential if it is been requested and there should not be any external pressures to be made on the respondents for participating in the research. A Gantt chart has been designed to provide information on flow of research as per the time scheduling assessed (Collis and Hussey, 2009) (with reference to appendix)
Chapter 4: Analytical Framework
4.1 Outcomes and findings
As per the expected outcomes and findings, that will be extracted from the primary data collection provide critical evaluation on green ocean strategy impact on customer loyalty and retention of Lenovo. The evaluation and learning provide brief evaluation on factors and approaches of green ocean strategy that helps to make sustainable development of the product and service of organisation. It will also help to extract positive and negative impact green ocean strategy in enhancing the customer retention and loyalty. Qualitative and quantitative research results enhance factors elements and relationships between strategic approach of Green Ocean and customer retention and loyalty. The expected finding of research will also provide information on use of factors of green ocean strategies to sustainably grow market demand and attractions of the customers.
The dissertations will provide critical evaluations and analysis of impact and significance of green ocean strategy for enhancing better customer retention and loyalty. In the particular study, the researcher focuses on factors and elements of green oceans strategy in prospect of chosen organizations Lenovo Group Ltd, UK. With the implications of primary data analysis, the researcher will able to extract information on better customer retention and customer loyalty of company through green ocean strategy.
List of References
Collis, J. and Hussey, R. (2009) Business Research, A Practical Guide for Undergraduate and Post Graduate Students, London: Palgrave,
McNiff, J. and Whitehead, J. (2006) Action Research, London: Sage
Mei, Z. (2013). On the Green Wave in Weibo Ocean. København.
Morton, L. (2013). Strategy and Command. Greenock: 232 Celsius.
Saunders, M. et al (2006) Research Methods for Business Students, Harlow: Prentice Hall.
Taylor, P. (2013). The Thirty-Six Stratagems. Oxford: Infinite Ideas.
Green, J. (2010). “Ocean tides and resonance”. Ocean Dynamics, 60(5), pp.1243-1253.
Harrison, R. L. and Reilly, T. M. (2011) "Mixed methods designs in marketing research", Qualitative Market Research: an International Journal, 14(1), pp. 7 – 26
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Magilvy, J. K. and Thomas, E. (2009) “A first qualitative project: Qualitative description design for novice researcher”, Journal of the Society for Paediatric Nurses, vol. 14, no. 1, pp. 298-300.
Nili, A. and Keramati, A. (2012). “Customer Retention Programs of CRM and Customer Retention in E-Banking”. International Journal of E-Entrepreneurship and Innovation, 3(1), pp.18-32
Olson, E. (2008). “Creating an enterpriseâ€level “green” strategy”. Journal of Business Strategy, 29(2), pp.22-30
Toloie-Eshlaghy, A., Chitsaz, S., Karimian, L. and Charkhchi, R. (2011) “A Classification of Qualitative Research Methods”, Research Journal of International Studies, 20, 106-152.
Truscott, D. M., Smith, S., Thornton-Reid, F., Williams, B. and Matthews, M. (2010) “A cross-disciplinary examination of the prevalence of mixed methods in educational research: 1995-2005”, International Journal of Social Research Methodology, 13(4), pp. 317-328
Tsao, H. (2012). “Budget allocation for customer acquisition and retention while balancing market share growth and customer equity”. Mark Lett, 24(1), pp.1-11
Table 1: Gantt Chart