T A Pai Management Institute (TAPMI), a Mangalore-headquartered management school, has launched the India Blue Ocean Strategy Research Centre in collaboration with Blue Ocean Strategy Regional Centre, Malaysia, to train corporates, students and faculty members for various management schools.
“We believe that this institute will help industry, student community and faculty for better understanding of the market strategies in the wake of ever-changing market dynamics,” Saji Gopinath, director of TAPMI, said.
Blue Ocean Strategy is a system that makes competition irrelevant by creating new market spaces through simultaneous achievement of differentiation and low cost. This strategy is about moving away from the traditional approach with existing competition.
“This centre will focus on increasing the adaptability of Blue Ocean Strategy (BOS) to different industry segments in the country and will undertake research and education services in collaboration with our Malaysian counterpart along with Manipal education,” he said.
This strategy proposes six principles that a company can use to formulate and execute its strategy. These principles help to reconstruct market boundaries, focus on the big picture to reach beyond existing demand, to get the strategic sequence right and overcome organisational hurdles to build execution into strategy through education, research and consultancy.
“The cornerstone of blue ocean strategy is ‘value innovation’ and a blue ocean is created when a company achieves value innovation that creates value simultaneously for both the buyer and the company,” Peter Tan of the Blue Ocean Strategy Institute, Malaysia, said.
Referring to the relevance of it to the Indian industry, he said Indian industry needs to enter a market through innovative products and services as well as redefine the traditional beliefs and boundaries.
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“Indian industries are facing severe competition from companies both locally and globally, and it is necessary for them to identify large markets where competition is irrelevant. In today’s market, it is necessary to invest in large untapped market for increasing profitability,” Tan added.
He also said that with the advent of globalisation, prospects in most established markets was shrinking with falling margins.
“It’s important to invent new market and create demand in these markets to stay competitive in the long-run,” he said.