Every organization seeks to increase its sales, generating profits is the goal of every company, marketing strategies become a constant effort to "win" more territory, time, resources, are focused, to beat the competition, win Niche markets are the raison d'être of many companies, so how do you think that an efficient way to beat competition is to stop fighting with it?
The answer is provided by W. Chan Kim and Renée Mauborgne, with their blue strategy approach: When you stop thinking about the competitor and focus your efforts on the customer through generating value through innovation.
In the nineties, The Blue Ocean Strategy emerged, which aims to expand the market through innovation, calling the known spaces of the market (competition) red oceans. (W. Chan Kim, 2005)
DEVELOPING.
It is important to define what is considered competition:
Situation in which there is an undetermined number of buyers and sellers, who try to maximize their profit or satisfaction, and in which prices are determined solely by the forces of supply and demand (economy, 2009)
Competition can come from different origins and will have results in different periods of time: short, medium, long term, so it is classified as follows:
- Generic. All companies competing for buyers' money. Direct. It is made up of similar products. Indirect. for substitute products or those that are not competitors, may be in the future because they cover the same needs.
This allows designing a whole host of strategies to beat any type of competition. (Jaime Rivera Camino)
Once the concept of competition is understood, the importance of the blue ocean strategy can be addressed, when the fierce competition that makes up the red oceans where all the existing industries are is abandoned and the market vision is opened, generating value through innovation.
These blue oceans are characterized by creating market niches in areas that are not currently considered, that generate opportunities for sustainable growth in the future, to find them, the six principles of the Blue Ocean must be considered.
Formulation principles:
Decreased risk factor
- Reconstruct the borders of the market. Search Focus on the global perspective, not the numbers. Planning Go beyond existing demand. Scale Develop the correct strategic sequence. Business model
Principles of implementation:
Overcome the key obstacles of the organization. Organizational
Incorporate execution within the strategy. Management.
The importance of these principles lies in considering the risk factors in order to carry out the strategy properly. (W. Chan Kim, 2005)
This allows to stop competing where everyone is and to look for virgin markets, one of the best known examples is that of Cirque Du Soleil, one of the most important cultural export products in Canada, ventured into a deteriorated industry, classified as entertainment for children and Boredom for adults, found its blue ocean in corporate and adult clients who were willing to pay a considerably high price unlike traditional circuses, in exchange for a different experience. They found a differentiation factor and increased value through innovation, maximizing opportunities and minimizing the risks that are basic principles for taking advantage of the strategy. (W. Chan Kim, 2005)
Other companies such as eBay can be considered with online auctions, Wii consoles, which have already considered other non-customers, Swatch watches that created fun designs and at a good price, Starbucks coffee shops, with their concept of a pleasant space to share, and even Netflix this internet service that has reached a segment that likes movies and series at home and has created new products and series of its own. (Gómez, 2014)
It is important to consider the definition of innovation:
Process of carrying out an idea or invention. This process results in generating added value, reducing costs or offering a new product or service in the market. (economic, 2011)
That is why the blue ocean strategy, considers the added value of generating different experiences taking advantage of opportunities, this is the cornerstone of its strategy, proposes to turn our eyes to non-customers and their common values, the point is to know what that they need or the experience that they have had as consumers, are differentiated by the relative distance to which they are from their market.
Classification of "non-customers":
- First level. Nearby customers, they are about to jump off the second level ship. They consciously refuse to choose the organization's market. Third level. Unexplored customers in markets far from the organization.
The three levels of non-clients (Restrepo)
The three levels of non-clients (Restrepo). Source: (W. Chan Kim, 2005)
The tools for the blue ocean strategy:
- The strategic picture, also called the strategic canvas
It is diagnostic and reflects the model to build the current strategy of the competition, the variables to consider and for which the consumer buys, it is interesting because it determines in which variable the industry invests more since it determines the purchase decision, it can be: image, service, packaging, flavor, etc., due to this, the value curve is generated which reflects the relative performance of the company considering the variables of the competition. Here the essential thing will be to direct the strategy to the alternatives and to the non-clients.
- Four actions scheme.
REDUCE. What variables should be reduced well below the industry?
REMOVE. What variables the industry takes for granted should be eliminated? INCREASE. Which variables should be increased well above the industry norm?
CREATE. What variables should be created because the industry has never offered them?
All this will lead to the generation of a new value curve.
- Delete-reduce-increase-create matrix
Example of Cirque Du Soleil matrix
| REMOVE
The stars Animal shows The concessions in the corridors Multiple tracks |
INCREASE
Single stage |
| REDUCE
Fun and humor Suspense and danger |
CREATE
A theme A refined atmosphere Multiple productions Music and artistic dance |
By creating a matrix with these characteristics, it is possible to focus efforts correctly.
Complementary qualities of the strategy.
- Focus. Strategic Profile Stand out from the rest through value innovation. Strong central message. Communicate the idea clearly and announce the offer truthfully. (W. Chan Kim, 2005)
The important thing is to adapt this strategy to the qualities of each organization, each one has unique characteristics.
CONCLUSION
The essential thing is not to leave the red oceans to fall into a puddle, what is necessary will depend on each organization, the blue oceans strategy allows us to open the vision, find alternatives for those non-clients whose needs have not been met, that is why it is It is important to observe the sequence of the blue ocean strategy, based on four points:
- Utility for the buyer Price Cost Adoption.
Where there are only two response variables: YES or NO, if it is affirmative to continue with the process, if it is negative, rethink, and that allows to rethink the situation in order to achieve the viability of the blue ocean. (W. Chan Kim, 2005)
This is a strategy that can allow you to do things differently, and manage to enter a new segmentation where the important thing is to focus attention on the non-customer, always maximizing opportunities and minimizing risks, there each company will find the blue ocean.
THESIS PROPOSAL
Design of a strategic chart and matrix of elimination, reduction, increase and creation, for the creation of a different market segment, through the blue ocean strategy.
OBJECTIVE
Implement the RICE matrix and strategic canvas tools in obtaining new clients by redefining the market segment using blue ocean strategy principles.
BIBLIOGRAPHY
- economy, L. g. (2009). The great encyclopedia of economics. Obtained from http://www.economia48.com/spa/d/competencia/competencia.htmeconómica, Z. (2011). Economic zone. Obtained from Dictionary of economics: http://www.zonaeconomica.com/innovacionGómez, AJ (May 29, 2014). Digital report. Obtained from Digital Report: http: //reportedigital.com/transformacion-digital/innovando-internet-estrategias-oceanosazules/Jaime Rivera Camino, M. d.-R. (sf). Marketing management, fundamentals and applications. Madrid: ESIC.Restrepo, RB (sf). The blue ocean strategy (theory by W Chan Kim, Renée Mauborgne). Bogotá.Rosales, JL (2015). Monterrey Information Technology Portal. Obtained from the Monterrey Information Portal: http: //www.itesm.mx/wps/wcm/connect/snc/portal+informativo/opinion+y+analisis/firm as / dr.+ jose + luis + ortiz + rosales / op% 2815jul14% 29joseluisortizChan Kim, RM (2005). The blue Ocean Strategy. Bogotá: Norma.
