Introduction
Administrative thinking is constantly evolving, each stage in the history of humanity presents the contributions or modifications to the administration, according to the needs of the time, since 2005 the strategy of which we will speak below, Ocean blue, has become very popular. We will take a tour from its beginnings, we will know a little about its founders, what were the concerns that gave them to the development of the strategy and certain applications.
Throughout this article we will see the characteristics of the strategy, the 8 key points, we will talk about the book, the authors and we will cite some examples in which the Blue Ocean has already been applied.
What is the Blue Ocean strategy?
Ocean Blue is a strategy that is responsible for renewing the idea of situations of competition between companies in an innovative way, and emphasizing breaking the rules that have been around competitiveness for many years, it also motivates in a particular way idea of creating new markets and encourages organizations to generate value in an innovative way.
30 industries were studied over 100 years in which they found 150 successful creations and alternately less successful competitors, the following was found: almost all companies want to be the best in existing markets, but with limited growth, that is, to belong to the red ocean; With the creation of new markets, the benefit is significantly higher and the most important thing that in the blue ocean can be created in all types of companies.
It consists of dividing the market into a red ocean and a blue one whose differences between them are: red competes in the existing market, always challenges the competition, exploits the demand that exists in the market, chooses between value and the entire system is aligns at a low cost, for its part, blue creates a new space without competition in the market, makes competition irrelevant, creates and captures new demand, breaks the choice between value and cost and finally all the system is aligned to achieve difference and low cost.
Sometimes listening to our work team is not a primary activity, however it would be good to listen to different points of view from the members of the industry, we may be surprised with the ideas and creativity that we can find and can collaborate with the new strategy.
The book
It has become a bestseller and has a record of publication in 43 languages, it is a worldwide phenomenon that has sold 3.5 million copies on 5 continents, it has won numerous awards; On sale now in its updated version by its authors, it narrates and develops the necessary steps to use the Ocean Blue strategy, leaving the competition behind and creating new job markets and innovating the ideas that have been had about competitiveness for years.
The authors
W Cham Kim is Co-director of the French institute INSEAD3, is a member of the World Economic Forum, has published countless articles on strategy and management, is recognized as one of the most influential authors in the world of global strategy; is number 2 in the ranking of the gurus of the top 50 of administrative thinkers in addition to having a series of recognitions such as the Nobel Prize for business leadership and Economic thought, is co-author of the book and co-founder of BOSN.
Renée Mauborgne is a member and professor of INSEAD, a member of the World Economic Forum, a member of the board of President Barack Obama, has published numerous articles on strategy and management, shares the second place in the Top 50 of administrative thinkers along with Kim, and in the same way, she is co-author and founder of BOSN.
8 key points of the strategy
- It is based on data.- Since it is a 10-year study of more than 150 strategic movements involving more than 30 industries from 1880 to 2000. It pursues differentiation and low cost.- It is a “yy” strategy, not just any of the two - or ”. It creates an indisputable market space.- It does not try to outperform the competition, it wants it to be irrelevant by rebuilding the boundaries of the industry. It is empowered through tools and frameworks.- Through these, it breaks with the competition and creates a blue ocean. Provides a step-by-step process.- Based on an assessment of the current situation, explores the six paths to new markets, how to convert non-customers into customers. opportunity and minimizes risk.- It allows you to test the commercial viability of your ideas.Build execution strategies.- The processes and tools are included, they are easy to understand and communicate. Show how to create a win-win.- Show how to align 3 propositions: value, utility and people; to ensure the organization is aligned around the new strategy and to create gains for all.
Strategy frameworks
Strategic picture
From it we start to build a strategy, on the horizontal axis are the factors that companies compete or invest and the vertical axis reflects the level of supply, you have two purposes: to show the current state in the known market and redirect the competitive approach to others alternatives for customers and non-customers in industries. The value curve represents the performance of a company through the factors of competition in the industry.
The Blue Ocean strategy
Value innovation
Value innovation is achieved only when utility, price, and cost align. Cost.- Cost savings are realized by eliminating and reducing the factors of a competing industry.
Buyer value.- Buyer value is elevated by growth and the creation of elements that the industry has never offered.
The Blue Ocean strategy
4 action frames
Raise.- What factors rise above industry levels? Create.- What factors must be created that the industry has never offered?
Reduce.- What factors should be reduced below industry levels? Eliminate.- What factors that have been competent in the industry should be eliminated? And all these when answered create a new value curve.
The Blue Ocean strategy
6 steps. (Nova, 2011)
The Blue Ocean strategy
3 levels of non-customers
It consists of 3 levels starting from our market, in the first level are those who buy in minimal quantities and out of necessity, those in the second do not like what the industry offers and finally those in the third have never taken their products as an alternative to what your market offers.
Ocean Blue application examples
Cirque Du Soleil, challenged the circus industry in a stage where the competition is very low and full of controversial accusations against the tents that used animals for their show, however they decided to paint their ocean blue and created a market totally alien to circuses, innovating with shows full of music, dance, color and artists, being entertainment for adults, it is usually the most mentioned example in this strategy, but below we will present other industries that have in the same way created space without competition.
The French advertising space provider JCDecaux company bet on a blue ocean by revolutionizing the advertising business worldwide, although it was known that the ways of advertising outdoors came to attract attention at the time, on many occasions it was almost It is impossible to see the panel that was attached to the bus that has just passed, the fences at the entrance to the cities and it is even almost impossible to finish seeing the spectacular that is on the highway due to the speed at which we travel; However, most of the industries bet on this medium. Despite this, JCDecaux decides to bet on innovation now all over the world, at each bus stop we can see the infinity of modern panels with the most recent advertising,in some areas of Europe these panels are tactile and serve as small information kiosks with which people interact and, most importantly, they have enough time to capture the message that any company wants to convey. The idea of providing furniture and maintenance to municipalities so that they sell the advertising space, increases the exposure time, allows to feed the content and sometimes project more complete messages.
In 1990 the illegal exchange of music, better known as piracy began to have a greater boom, programs were developed that allow sharing and downloading music for MP3 players and later they were already available to any device for free, a fact that came to harm the recording industry; It was then when Apple decided to innovate with what we now know as Itunes Store, the virtual store that offers more than 8 million songs (Blue Ocean Strategy, 2015) to be purchased through its store and enters the market with the attractive proposal of to be able to buy only one song, which was impossible with compact discs and in many cases it was a brake to acquire the complete disc, now you could build your own digital library with only your favorite songs,currently not only offers music, there are books that can also be purchased and kept digitized.
Finally, I would like to mention Philips, a company that had a great success in England by introducing its filter boilers; The British tea culture in England is very important, however the company detected that the quality of the liquid that was consumed was not good thanks to the lime that the water contained, since when boiled it left a strange flavor; This is when most people saw a problem and Philips found an area of opportunity and created a new product in that market: a kettle with a filter in the mouth that stopped the passage of lime into the cup of tea and is here where people started replacing their old kettles and gave way to kettles.
Conclusions
The idea of changing the focus of competition, allows to create a different framework for companies, made to innovate and create new spaces revitalizes the purposes of industries, changes their perspectives and favors us as customers because it allows them to be more in touch. pending of our needs. It is a new tool that will be polished with the passage of time and adapting to evolution. As we can see throughout the article, the book takes a role as a manual regarding the strategy with a series of steps to follow in order to diagnose the current situation and subsequently apply the tools.
As we could see through the examples, there are companies that can attest to the effectiveness of the strategy and although there is still a long way to go, we are sure that soon the list of industries painted blue will be longer.
Gratitude
First of all, to the National Technology of Mexico my Alma Mater, to Professor Fernando Aguirre Y Hernández who teaches the subject of Fundamentals of Administrative Engineering for sharing the necessary knowledge for the writing of an article and for encouraging us daily to be better professionals.
Thesis proposal
"Analysis of the Ocean Blue strategy to be integrated as a subject, in a study plan in the Business Management and Direction career"
goals
- Analyze if the strategy as such can be of educational orientation Determine if it is applicable in one or several subjects Develop a curriculum that covers all the frameworks of the strategy Create a culture of market innovation at the national level if possible, from education at the undergraduate level Disseminate the strategy as a subject within the career study plan Attach an activity that allows the student to make diagnoses in companies and be able to contribute ideas in them to create new markets in the localities.
Bibliography
- Blue Ocean Strategy. (February 11, 2015). Blue Ocean Strategy. Obtained from Blue Ocean Strategy: http: //www.blueoceanstrategy.com Espinosa, R. (February 12, 2015). Ideas for SMEs. Obtained from Ideas para Pymes: http: //www.ideasparapymes.comNeuronilla. (February 12, 2015). Neuronilla Specialists in creativity and innovation. Obtained from Neuronilla Specialists in creativity and innovation: http: //www.neuronilla.com Nieto, EJ (November 15, 2013). Gestiopolis. Obtained from Gestiopolis: http: //www.gestiopolis.comNova, AP (February 2, 2011). Slideshare. Obtained from Slideshare:
