In this study, companies are recommended to focus on social pressures that can result in government regulation in order to find a blue ocean. Based on the process of coercive institutionalization, researchers focus on the fact that social pressures can result in the establishment of formal regulation. If companies can detect these ‘omens’ of the regulation earlier, they are more likely to enter the new market originating from the regulation for the first time. Companies should also try to respond to this recognized isomorphic pressure ahead of others. In this process, social inertia against change should be considered in order to enter the new market as early as possible. To investigate this issue, we examined how Toyota initiated a new green car market with Prius after top management detected the social pressure to be green.
Key words: Blue ocean, institutionalization, green, Toyota