INTRODUCTION :
Today the competition in the market is increasing, but how can we combat this situation? Well the answer is quite easy, authors W. Chan Kim and Renee Mauborgne propose an innovative strategy in their book The Blue Ocean Strategy.
Today we must forget about the competition between companies that in the end becomes destructive. This can be done by broadening market horizons and creating value through innovation.
The strategy created by these authors is a challenge for companies, so that they abandon the competition and focus on the creation of new markets in which competition is unimportant. Enough of companies dividing existing demand and constantly comparing themselves, let's put this behind us and create blue oceans.
ORIGIN OF THE CONCEPT:
The blue ocean strategy concept originally emerged in 1990 by authors W. Chan Kim, a professor at the University of Michigan College of Business Administration before joining INSEAD, and Renee Mauborgne, INSEAD Distinguished Research Fellow, Professor of strategy. This concept is a revolution in management, an analytical tool to understand problems and a conceptual tool to create solution options.
Blue oceans are defined as untapped market spaces and by creating demand and opportunities for highly profitable growth, competition loses its validity. It is important to establish that the expression "blue oceans" is new; however, its existence is not. Blue oceans have existed for many years, over time new industries have emerged amid red oceans. Industries never remain static, but are constantly evolving. History teaches us that we have grossly underestimated the ability to create new industries and re-create existing ones.
Value innovation is the cornerstone of the Blue Ocean strategy.
PRINCIPLES OF THE BLUE OCEAN STRATEGY:
Formulation principles:
- Create new consumer spaces:
"The first principle for the creation of a strategy of these characteristics is to establish a structured process that manages to expand the limits of the market" (ESTRATEGIAYNEGOCIOS, 2006)
Opportunities to create blue oceans must be correctly identified among all the possibilities. There are definite patterns for creating blue oceans and they are divided into 6 ways that are applicable to all sectors of industry.
- Way 1: Define your industry and focus on being the best in it Way 2: See the industry through the lens of generally accepted strategic groups and seek to stand out within the competing group Way 3: Target the same group of buyers Way 4: Similarly define the scope of products and services offered in that industry Way 5: Accept functional or emotional orientation of that industry Way 6: Focus on the same point in time when formulating your strategy.
- Focusing on the big picture, not the numbers: it consists of investing a lot of time and effort to achieve only a few tactical movements in the middle of the red ocean, a different approach is developed as an alternative to the existing process of strategic planning. It is an approach from which it is possible to continuously generate strategies that are easy to understand, communicate and execute with the purpose of unleashing the creativity of people within the organization.
There are a number of steps to visualize the strategy:
- First step: visual awakening. Here we must compare the business with that of the competitors and determine where it is necessary to change the strategy. Second step: visual exploration. The six ways to create blue oceans are explored, the advantages of the alternatives are observed and it is determined which variables should be eliminated, created or changed. Third step: Visual strategy fair: A strategic picture must be made and feedback is sought from Other possible strategic frames. Fourth step: Visual communication: Distribute the strategic profiles before and after on the same page and only support projects and operational movements that allow the company to fill gaps in order to make the new strategy a reality.
- Go beyond existing demand: Companies should correct two conventional strategic practices: one that consists of focusing only on solving the needs of current customers and one that leads to excessive segmentation of markets. To maximize the size of blue oceans, companies should not focus on customers but on non-customers. There are two levels of non-customers: the first is made up of people who at some point have analyzed our offer of products or services, but have finally decided that the ones we offer do not meet their expectations and the second level of non-customers consists of the people who consider the current offering of products as unacceptable or beyond their economic possibilities. Develop the strategic sequence:The aim of this principle is to reduce the risk involved in implementing such a strategy. To ensure viability we must answer yes to the following questions:
- Will the clients get an exceptional profit from the new business idea? Is the price set for the products or services available to the great mass of potential clients? Is the cost structure we have viable considering the price objective? We have set ourselves? Are there obstacles to transforming our current value proposition?
For the new product or service to consistently attract the masses, it must make customers' lives much simpler, more productive, more comfortable, more fun, with less risk and respecting the environment. However, the viability of the blue ocean strategy in setting an appropriate price must also be determined. The strategic price that is set for the offer of products or services not only has to attract customers in a massive way, without or should also be an incentive to retain them.
Execution principles:
- Overcome key organizational obstacles:
The obstacles that hinder the execution of the blue ocean strategy are the following:
- The first is cognitive and is related to the need to make employees aware of the need for this strategic change. The second is related to the scarcity of resources. It is assumed that the greater the strategic change, the greater the need for the necessary resources to implement it. The third obstacle is motivation. The fourth obstacle is related to the political aspects of an organization, which is why they suggest evaluating who can be considered found. in this process of change.
- Incorporate execution into strategy:
To consistently execute a strategy, all members of the organization must be aligned with the strategy to be executed. To achieve this trust, commitment and cooperation from people, organizations must consider execution within strategy from the beginning. A key principle is to establish a fair strategy formulation process. It must respond to the principles of people's involvement, explanation of the reason for strategic decisions and finally the clear establishment of the new rules of the game.
TOOLS AND ANALYTICAL SCHEMES:
- The Strategic Chart: It is a diagnostic tool and a practical scheme to build a compelling blue oceans strategy. “It serves two purposes. The first is to capture the current pattern of competition in the known market in order to shed light on the investments of the various players, on the variables around which the industry currently competes in products, service and delivery, and on what those customers receive when they buy what competitors currently offer on the market. " (CHAN KIN & MAUBORGNE, 2005) The scheme of the four actions: it is used to construct a new value curve.
Outline of the four actions of the blue ocean strategy
As can be seen in illustration one, this scheme consists of 4 questions where: the first question is responsible for eliminating the variables around which the competition of a certain industry has revolved, the second determines whether in the process of wanting to exceed or achieve Competition has been exaggerated with products or services, the third seeks to discover and eliminate the sacrifices that the industry imposes on customers and finally the fourth question seeks new sources of value for buyers.
- “Eliminate-reduce-increase-create” matrix: this matrix is a complement to the four-action scheme and is responsible for stimulating companies to act with respect to the four-action scheme. It is a matrix with four quadrants to which each one is assigned either to eliminate, reduce, increase or create and then each quadrant is filled with the actions for each case. Three characteristics of a good strategy:
- Focus: Every great strategy has a focus and this must be reflected in the strategic profile or the value curve of the company Divergence: When a company reactively develops its strategy to stay in tune with the competition, it loses its uniqueness. overwhelming.
DIFFERENCES BETWEEN THE RED OCEAN STRATEGY AND THE BLUE OCEAN STRATEGY
- The red ocean permanently competes in the existing market space; on the other hand, the blue ocean creates a new space, without competition in the market. The red ocean challenges the competition, while the blue ocean diminishes all importance to the competition making it irrelevant. The red ocean exploits the existing demand in the market unlike the blue ocean that creates and captures new demand.
The red ocean chooses between the value or cost dilemma. The blue ocean breaks the value or cost tradeoff.
- The red ocean aligns the whole system in the activities of a company with the strategic decision of differentiation or low cost. The blue ocean aligns the entire system in the activities of a company with the purpose of achieving differentiation and low cost. The red ocean has well-defined and accepted limits of the industries, the competitive rules are well known and the more competitors the possibilities for growth decrease. In contrast, in the blue ocean new markets are created in currently unexploited areas and long-term growth opportunities are always generated.
EXAMPLES OF THE CREATION OF BLUE OCEANS:
Cirque Du Soleil:
This circus was founded in 1984 by a group of street performers. Cirque du Soleil created a new market, appealing to a completely different group of clients: adults and corporate clients willing to pay a price several times higher than that of traditional circuses for an entertainment experience. Cirque du Soleil reinvented the circus. This circus stopped using animals in its shows, opted to keep the clowns, but changed the style of humor based on blows for a more charming and sophisticated style, it added elegance to the tent with greater comfort, it kept the acrobats together with other suspense acts, but giving them a lesser role and adding an artistic touch. In other words, Cirque du Soleil offers the best of circus and theater,so he strategically set his ticket prices at the theater level. Cirque du Soleil broke the circus industry best practice rule while achieving differentiation and low cost by rebuilding elements that were outside the existing boundaries of its industry.
Starbucks:
This coffee shop scheme arises from Italian espresso, manufactured and served by North Americans. Starbucks today operates in 50 US states, has 7087 directly operated coffee shops and 4081 licensed coffee shops. However, it operates in 43 countries around the world. "In their value chain, they added" Espresso Dating ", it is a very comfortable place to meet people, make friends, read, research on the internet and fall in love." (BLISS RESTREPO)
THE BULLI:
Fundado en 1962 por la pareja de esposos alemanes Hans y Marketta Schilling. Es un restaurante ubicado en la Cala Montjoi, en Rosas, Gerona, a 200 kms de Barcelona en una vieja casa de campo. Cuenta con las 3 Estrellas de Michelin y ha sido catalogado como el mejor restaurante del mundo por 3 años consecutivos. Este restaurante recibe 400.000 reservas por año de todo el mundo, no reservan de un año a otro y cada plato vale entre 150 y 200 euros. El éxito de este restaurante se debe a su diseño, concepto y la forma en que presentan los platos. Los clientes no van a comer sino a disfrutar del espectáculo. No obstante, han roto moldes gastronómicos con helados salados, croquetas liquidas, espumas con batidos, sal con dulce, etc.
SOUTHWEST AIRLINES:
“La empresa Southwest desafío la creencia de que una línea aérea no podía ser rentable con vuelos punto a punto.” (UNIVERSIDAD DE SAN MARTIN DE PORRES, 2012) Sus precios son atractivos, no invierte en clases ni en salas de espera, no sirve comida a bordo, más del 80 % de sus vuelos están programados sin escalas ni transbordos, transporte de alta velocidad, manejan salidas frecuentes y flexibles, utiliza un tipo de avión que se caracteriza por su bajo costo.
RELOJES SWATCH:
Esta relojería rompió moldes cambiando materiales, diseños, accesorios, colecciones de estaciones, gama de colores y estilos.
- VIRGIN ATLANTIC AIRWAYS: Esta aerolínea creo su océano azul por medio del lujo. Al viajar en la clase “Upper Class” se viaja en una suite con una silla que se convierte en una cómoda cama de 2.02 x 0.84 mts. Cada suite trae consigo una otomana que también sirve de asiento para invitados, para que puedan cenar juntos. No obstante, en todos los vuelos se ofrece un restaurante abierto las 24 horas. Cada silla cuenta con un sistema de entretenimiento personal de última generación, Tv de 14”, con los últimos éxitos de taquilla. Richard Branson dueño de esta y otras aerolíneas no se ha detenido en su camino de océanos azules, actualmente está trabajando en un proyecto para su nueva compañía “Virgin Galatic”, donde planea realizar vuelos cero gravedad; es decir, busca lanzar los primeros turistas espaciales en una nave de 6 pasajeros.
CONCLUSIÓN:
La estrategia de océano azul es una herramienta innovadora que busca crear nuevos mercados para así dejar atrás los tiempos de competencia sangrienta. Hoy en día crear un océano azul es mucho más rentable que establecerse en un océano rojo y seguir una eterna lucha por una porción de la demanda total.
Muchas personas ven la creación de océanos azules como un trabajo sumamente difícil sin darse cuenta que a través del tiempo muchas de las industrias empezaron como un océano azul, aún hay infinidad de mercados que no se han abarcado.
Así pues hay que dejar de competir por los mismo clientes y debemos despertar esa parte innovadora y crear nuevo valor para nuestros clientes.
AGRADECIMIENTOS:
Le agradezco a mi alma mater el Instituto Tecnológico de Orizaba, al profesor Fernando Aguirre y Hernández quien imparte la materia de Fundamentos de la Ingeniería Administrativa por demostrarnos que somos capaces de escribir artículos de diversos temas, por fomentarnos el habito de la lectura y sobre todo por ayudarnos a darnos cuenta de lo que somos capaces de lograr.
BIBLIOGRAFÍA
- BLISS RESTREPO, R. (sf). USBMED. Obtained from USBMED: http://web.usbmed.edu.co/usbmed/egresados/docs/memorias/MEMORIAS%20CONFERENCIA%20ORIGINAL%20OCEANOS%20AZULES_Richard%20Bliss.pdfCHAN KIN, W., & MAUBORGNE, R. (2005). THE BLUE OCEAN STRATEGY. BOGOTA: NORMA.ESTRATEGIAYNEGOCIOS EDITORIAL GROUP. (2006). STRATEGY AND BUSINESS. Obtained from ESTRATEGIA Y NEGOCIOS: https://estrategiasynegocios.files.wordpress.com/2006/11/la-estrategia-del-oceanoazul.pdf UNIVERSIDAD DE SAN MARTIN DE PORRES. (2012). USMP. Obtained from WEBMASTER: http://www.usmp.edu.pe/vision2012_lima/SEMINARIOS/conferenciaJueves/Inno vacion__valor_La_estrategia_del_oceano.pdf
