This study aims to know the impact of applying the Blue Ocean Strategy with its four dimensions (reduction, elimination, increase, and innovation) in reducing quality, by enhancing prevention costs and reducing evaluation and failure costs in the General Company of Ur/Electric Cables Factory. The study addresses how this strategy contributes to reducing quality costs, and thus reducing the total costs of the company. A survey was conducted on 100 employees using a structured questionnaire to obtain information about the impact of this strategy on quality costs. The reliability of the data was verified using the retest test, and the Cronbach’s alpha coefficient was 0.775. The results of the correlation analysis showed a statistically significant negative relationship between the application of the Blue Ocean Strategy and quality costs, as the results indicated the possibility of reducing quality costs by up to 50% by adhering to this strategy. A value of 0.562 represents evidence that more than 50% of the variance in quality costs is attributed to the application of the strategy. These results indicate the importance of innovation and increasing the efficiency of business processes, and provide practical opportunities for the General Company of Ur to achieve competitive advantages, stabilize financial results, and improve the quality of products and services.

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The Impact of Blue Ocean Strategy on Reducing Quality Costs

  • Zina Hamza Ghali,
  • Hanan Sahbat Abdullah

摘要

This study aims to know the impact of applying the Blue Ocean Strategy with its four dimensions (reduction, elimination, increase, and innovation) in reducing quality, by enhancing prevention costs and reducing evaluation and failure costs in the General Company of Ur/Electric Cables Factory. The study addresses how this strategy contributes to reducing quality costs, and thus reducing the total costs of the company. A survey was conducted on 100 employees using a structured questionnaire to obtain information about the impact of this strategy on quality costs. The reliability of the data was verified using the retest test, and the Cronbach’s alpha coefficient was 0.775. The results of the correlation analysis showed a statistically significant negative relationship between the application of the Blue Ocean Strategy and quality costs, as the results indicated the possibility of reducing quality costs by up to 50% by adhering to this strategy. A value of 0.562 represents evidence that more than 50% of the variance in quality costs is attributed to the application of the strategy. These results indicate the importance of innovation and increasing the efficiency of business processes, and provide practical opportunities for the General Company of Ur to achieve competitive advantages, stabilize financial results, and improve the quality of products and services.