Thinking of a family business, perhaps a mechanical workshop, a company where the father of the family has belonged to that business for two generations, and has inherited those skills to fix cars. However, on one occasion, just in front of his workshop, a new mechanical workshop is installed, which offers its services at a lower cost than the first. What is the first solution that the father of the family thinks of this problematic situation? Lower your costs more, so that none of your clients, and those who could become your clients, come with your competition from the front. This is a red ocean. A competition, voracious, tough, ruthless and sometimes even unfair, which does not allow us to see all the possibilities that companies or organizations have,to be able to grow and achieve the goals they have set.
Now, if faced with this same problematic situation, in which this business is involved, the mechanic could sit down to meditate a little on his situation, he would generate ideas such as starting a new branch in his business, how to buy cars with a problem, fix them up and put them up for sale as working cars in perfect condition, or perhaps, when you don't have all the space occupied by vehicles under repair, offer the parking service. This is a blue ocean. A strategy that allows observing the whole panorama of work that a company can have, and that allows it in the short, medium or long term, to implement ideas that help it grow and which is not necessarily in its industrial branch, in this case the repair of automotive vehicles,It is to enter the market of the sale of automobiles where agencies of world-renowned brands or pensions and parking lots are involved that their only turn is to provide a place to keep the car.
What is preventing a company from developing in a blue ocean? They are all the paradigms that are lived in the labor world, where one thinks only of the sector to which he belongs, and in that constant fight that must be to overthrow and beat the competition, closing the field of vision of any person or businessman, denying him to observe the whole panorama that exists in front of him.
Fortunately, this strategy has arrived, which has allowed, and will continue to allow, to implement new ideas or tools that can help a company grow and meet its objectives.
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When you think about the ocean strategy, it can be defined as the areas that exist in the markets that have not been exploited and that allow the creation of demand and opportunities for highly profitable growth and development. It cannot be seen physically, yet, because it is represented by companies that do not currently exist. One of the disadvantages that this strategy presents is that this type of “ocean” develops very far from the limits in which the industry currently develops, however, for the most part, the blue oceans emerge from the red oceans in which most of the companies and organizations are submerged. But, this leads to the question, What is a red ocean? As well,a red ocean is made up of the vast majority of business organizations that exist today, it moves directly in what is known as a market. In this type of oceans, the borders and limitations that exist are fully defined, since they are mainly based on the competition that exists between companies of the same line of business, where they seek to be the leader and be number one in sales, customers, and net profits for the year, generating a devastating climate of competition, generating tricks and unfair competition, and which, in turn, prevents the growth and development of any type of industry.because they are mainly based on the competition that exists between companies of the same line of business, where it seeks to be the leader and be number one in sales, customers, and net profits in the year, generating a devastating climate of competition, generating tricks and skills unfair, and that in turn, prevents the growth and development of any type of industry.because they are mainly based on the competition that exists between companies of the same line of business, where it seeks to be the leader and be number one in sales, customers, and net profits in the year, generating a devastating climate of competition, generating tricks and skills unfair, and that in turn, prevents the growth and development of any type of industry.
For this reason it is necessary to define some of the central points of each of these oceans:
Blue ocean:
- Develop a space that has no competition in the market. Implement a growth approach, in which the subject of competition is totally irrelevant and beating rival companies is not the center of attention. Its dynamics allow to create and attract demand. It is new to the market. It is essential to break the paradigms regarding the planning and use of values and costs. It seeks to align the entire system in activities, but seeking to stand out in the potential market by differentiation and low cost.
Red oceans:
- Its main objective is focused on competition in the space that exists in the market, always trying to beat companies that compete in the same business line. The actions they decide to implement are related to the challenges that competition imposes, be it by price., by quality, by image or by any type of aspect. Only the existing demand in the market was worked. Very often the concepts of quality and cost are widely separated, there cannot be a cheap element that is of high quality, nor can there be an item that is expensive, without meeting demanding quality guidelines.
AND
It is true that this concept of the oceans is new and innovative, but, thinking about its fundamental basis, it can be concluded that the process in which it is guided is something that has been seen to bear fruit over the years, that is, Thinking about the industrial world of a hundred years ago, it can be assured that no businessman, no matter how brilliant he was, could have even imagined automobile companies, the audiovisual industry (discs, DVDs, cinemas, films), the aeronautical industry, the petrochemical industry, etc. You don't have to travel so far back in time to see the results of an application, perhaps unconscious, of the system that manages the “blue ocean”. Thirty years ago, nobody was betting on a mobile telecommunications company, a company dedicated to express messaging, organizations that retail,finished products like minivans, or snowboards, and yet, for these industries to be, what they are in the global market, part of the actions and strategies that began to be implemented a couple of years ago of decades. For this reason, this strategy is not a study without feet or heads, certainly, the Blue Ocean is based on companies that manufacture a product or service, which are not yet physically visible, but are oriented to the needs that they can present in the future, and when they are developed in time, they will be a benchmark in the market worldwide.part of the actions and strategies that began to be implemented a couple of decades ago. For this reason, this strategy is not a study without feet or heads, certainly, the Blue Ocean is based on companies that manufacture a product or service, which are not yet physically visible, but are oriented to the needs that they can present in the future, and when they are developed in time, they will be a benchmark in the market worldwide.part of the actions and strategies that began to be implemented a couple of decades ago. For this reason, this strategy is not a study without feet or heads, certainly, the Blue Ocean is based on companies that manufacture a product or service, which are not yet physically visible, but are oriented to the needs that they can present in the future, and when they are developed in time, they will be a benchmark in the market worldwide.They will be a benchmark in the world market.They will be a benchmark in the world market.
The
Principles of formulation:
1 . The borders that are currently on the market must be rebuilt.
With the application of this principle, the search risk factor is reduced, in order to separate it from the competition, and thereby facilitate the creation of a blue ocean. Without a doubt, it is a principle that allows the organization's efforts to be corrected and refocused. The obstacle to overcome is that of being able to correctly identify among all the possible opportunities that exist, which ones that really have commercially good potential, to be able to make sprout a new blue ocean. This is a very important factor since it has to be based on studies carried out correctly to avoid that any type of investment turns out to be just a random game. To help facilitate this task, there are six basic approaches, grouped together as the six-way schema,applicable to any type of industry and based on the ability to see the real situations that can be perceived by a person.
Form one: Exploring industries that are not directly related
(Alternatives)
A very clear way of opening the panorama to be able to enter the blue ocean, is to have the concept that a company or a company does not compete only with companies of the same turn, a very clear example is restaurants, that is, Today, the way in which a restaurant's success or failure is measured has a lot to do with how one gains or loses customers from the competition, and whether a restaurant displays a menu of fifty pesos, the competition proposes a price that costs forty-five pesos, and so on in the other branches and approaches that these companies can handle. But, the reality is completely different, because the competition should not be with that focus, a restaurant can compete with a cinema, how? To the extent that you offer a product a service to the public,With which, people prefer a date to go to eat, that to go see a movie, can compete with a grocery store, offering products that the market changes the purchase of a junk product, for a fruit plate or a light food. Competition is not, how much can I sink companies of the same turn, competition is, how the organization makes a difference with respect to others.
Way two: Know the Strategic Groups.
This path works under the principle of differentiation, that is, to define specifically, what or what would be the reasons why a client prefers the service or product of a certain company and not its competition. In this case, the strategies followed by companies working in the same market sector are compared and analyzed. The price and performance approach can be given. It does not only seek to lower a price or raise a quality without taking costs into account, rather, it tries to observe the characteristics of the companies and determine what are the details or the elements that generate the greatest satisfaction to the client, and that due to This, they stay with the clientele.
Form three: Exploring the chain of potential customers.
There is a very varied chain of buyers that are directly or indirectly related to the acquisition of a product or service, that is, there are users, who are the ones who put it to use, but there are also opinion leaders, whose guiding opinion and greatly influences the potential market. In this aspect, the managers in charge of purchasing are also involved, in whom the “price” and production factor falls, in whom the “quality” factor is reflected. Another type of buyer, is the retailer, and it contributes to the company, to be able to have an inventory rotation, thus avoiding stagnations and delays that could harm the organization.
Form four: Exploration of complementary services.
In this way, the few products or services that are used independently are included, because as the products or services that are offered by other companies are currently handled, they can affect the value of their own, however, always they move within established limits. Exemplifying this, one can think of a cinema, those who only care about the costs generated within, however, there is a certain part of the market that in order to attend a function, they need to spend on a person who takes care of their children, and at an additional cost for parking the vehicle. At first glance it seems to be something totally out of the limits in which a cinema moves, however these types of costs have a profound impact on people's decision-making.The key is to define the total solution that customers are looking for when making their choice for a product or service.
Form five: Exploration of attraction in a functional or emotional way.
There are some companies that compete based on the price and function of the product they offer, derived from a utilitarian calculation, that is, their attraction is rational, but companies that rely on competition based on the feelings they may generate in their customers their appeal is emotional. But very rarely is it totally one way or the other, the vast majority of which is a combination of both, where the highest percentage depends on the company's focus on the product it offers to the market.
Form six: The "Time" factor.
Absolutely all organizations can be affected positively or negatively by the passage of time, because with it, the demands, currents and fashions are changing. Most industries adapt slowly and passively as events unfold. For this reason, the focus of attention must be specified, towards the forecast of the changes that may exist in the market, and act quickly to cover the needs of a nearby market.
2 . Put the overall idea at the center of the company's focus, not the numbers.
The next stage to follow is to find the best route for applying the ideas that have emerged as the basis for a blue ocean. This is not an easy challenge because the vast majority of companies are tied to the red oceans, which leads them to follow guidelines, planning and management systems as any other company does in the existing market. This principle is very important to minimize planning risk, which occurs due to the investment of many resources, such as time, money and effort to achieve only some changes that ultimately does not take the organization out of a red ocean. The final objective of this stage focuses on the conceptualization of a strategic picture,approach through which it is possible to generate strategies or tools that are easy to analyze and implement in order to grow the creativity of a large part of the people who work within the company and with this, show the organization, the broad panorama where the blue oceans meet. A strategic picture, mainly fulfills three purposes:
- It allows to show the strategic profile of the company, presenting the variables It presents the strategic profile of the competition that exists in the market It presents the strategic profile of the organization, or its value curve. And for its elaboration, it is necessary to follow the following methodology: A visual awakening.- Where the company is compared to the competition, by drawing the strategic chart. A visual exploration.- You must go out into the field, to explore the ways to get there to a blue ocean. Developing a strategy fair.- In this phase, the drawing of the strategic table is proposed based on what "should be" with the information collected in the previous step. It is always good to carry out focused feedback on the strategic charts of the different types of market. Visual communication.- The “before” and “after” strategic profiles must be distributed in order to easily carry out a meaningful comparison.
3 . Do not settle for the demand that already exists.
There are a large number of companies and organizations that prefer “the bad for known, rather than the good to know”, that is, they settle for the elements at their disposal and seldom decide to make a change or expand the market they manage. And certainly any change carries a risk, however how many possibilities are not being lost, due to this somewhat unsubstantiated fear? In order to achieve this growth that can be significant in the development of a company, two strategic practices that are carried out with great normality in industries today must be corrected mainly: The first, an approach that dictates centralization only in solving the needs of the current market and the second, an extremely segmented market visualization.
This problematic situation can be solved by enlarging the blue oceans, that is, not focusing entirely on satisfying the customer that already exists, but thinking about those market sectors that do not yet have one, but which have great potential for help the company stand out. This “non-customer” market can be divided into two, thinking about the distance it has with respect to the customers that the company currently has: In the first part, you can see people or organizations, who know the services or products that are offered, but that for certain factors did not consume them, in the second part are the people or companies that are looking for a change, because they consider the current conditions in which they are unacceptable. These are the parties involved,and that they represent a large potential market, which in turn, can generate large-scale growth of the current situation of the organization.
4 . Application of the correct strategic sequence.
The next challenge for organizations is focused on building a well-founded business model that can guarantee the conception of a blue ocean, where the profits that can be achieved are somewhat solid, and which leads to the next step in the methodology. of the application of the blue ocean: the application of a correct strategic sequence. Which is to point out and validate the idea or ideas that have been generated for the outbreak of a new blue ocean in order to guarantee its commercial viability.
5 . Break down the strongest organizational barriers
It is a very natural thing for new ideas or for the changes that are planned to be applied, a start full of difficulties and problems, at the moment of bringing everything to a physical action. But for the strategy that has been accepted in the blue ocean, everything revolves around a change that basically consists of moving from convergence to divergence, as far as value curves are concerned, and at a lower cost. This is clearly spelled out in four main barriers to overcome:
- The perception of the idea or change. Limited resources and sometimes scarce. Motivation. The policy barrier.
6 . Incorporation of the execution within the strategy.
In this principle, the risk factor that is sought to be minimized is the risk of management, that is, seeking the correct implementation of all the analysis that has been carried out, and trying to follow the methodology that may lead to the company, or the future company to development and growth and in general to success.
C on c lu s ion and s
Red oceans abound today, a system and set of points of view, which limit any person, entrepreneur or organization, to conceive new ideas, which can become a great investment, that is, certainly the blue ocean, It is based on concepts or visualizations of companies that do not yet exist, but that in the future will cover the needs of a growing market.
The idea of a blue ocean focuses on four fundamental points:
- The creation of new consumption spaces, the centralization in a global idea, the risk of trying to enter a new area of the market, and the commercial viability of the blue ocean.
Each of these stages has its investment and its risks, but, if done correctly, it can lead a person or an organization to success.
P r opu es t of thesis.
Development of a blue ocean, around the disposal of automotive tires.
O b j e t i v o .
Realize and implement the concept of blue ocean, in a growing pollution factor such as tire waste.
A g r a d ec i m i e n t o s .
Special thanks to the Orizaba Technological Institute, to Professor Dr. Fernando Aguirre y Hernández, who teaches the subject of Fundamentals of Administrative Engineering, for all the knowledge he shares with his students and to the Master in Administrative Engineering that promotes the culture of learning. As well as thanking CONACYT for the support provided and for the areas of opportunity that it generates, with its different programs for graduate students.
B i b li og r to f í to .
Chan Kim, Renée Mauborgne. (2005). The blue Ocean Strategy. Bogotá, Colombia: Grupo Editorial Norma.
Germán Urdiz. (2013). What is the blue ocean strategy?
04/26/2013, from Sage Experience Website: http://blog.sage.es/economia- company / what-is-the-blue-ocean-strategy /
Castro Arroyo Teresa de Jesús. (2015, February 23). What is the Blue Ocean strategy ?. Recovered from http://www.gestiopolis.com/que-es-la-estrategia-oceano- azul
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