Blue Ocean Strategy

By Manuel Steve

CONTABILIDAD ADMINISTRATIVA

ID 20-0537

Profesor PAMELA STEPHANIE GONZALEZ LIRIANO

December 2th, 2021

 Blue ocean strategy is the synchronous quest for separation and minimal expense to open

up another market space and drive new interest. It is tied in with making and catching uncon-

tested market space, in this manner making the opposition superfluous. It depends on the view

that market limits and industry structure are not guaranteed and can be remade by the activities

and convictions of industry players. Blue oceans, conversely, indicate every one of the ventures

not in presence today – the obscure market space, untainted by rivalry. In blue seas, request is

made rather than battled about. There is sufficient freedom for development that is both benefi-

cial and quick.

In Blue ocean, rivalry is immaterial on the grounds that the standards of the game are

holding back to be set. A blue sea is a similarity to portray the more extensive, more profound

potential to be found in neglected market space. A Blue ocean is immense, profound, and incred-

ible as far as productive development. Red oceans are generally the enterprises in presence today

– the realized market space. In Red oceans, industry limits are characterized and acknowledged,

and the serious guidelines of the game are known.

Here, organizations attempt to beat their opponents to get a more prominent portion of

existing interest. As the market space becomes busy, benefits and development are decreased.

Items become products, prompting relentless or 'wicked' contest. Consequently for that is the

term Red oceans.

Cemex
. Cemex, one of the world's biggest concrete makers, made a blue ocean of high benefit

and development in the concrete business that generally contended exclusively on cost and use-

fulness. It did as such by moving the direction of its industry from utilitarian to enthusiastic.

In Mexico, concrete sold in retail sacks to the normal do-it-yourselfer addresses in excess

of 85% of the complete concrete market. As it stood, nonetheless, the market was ugly. There

were definitely more noncustomers than clients. Despite the fact that most helpless families pos-

sessed their own property and concrete was sold as a moderately cheap useful info material, the

Mexican public lived in constant congestion. Scarcely any families assembled options, and those

that did took on normal four to seven years to construct a solitary extra room. Why? A large por-

tion of families' additional cash was spent on town celebrations, quinceañeras (young ladies' fif-

teen-year birthday celebrations), submersions, and weddings.

Therefore, the vast majority of Mexico's poor had inadequate and conflicting reserve

funds to buy building materials, despite the fact that having a concrete house was the stuff of

dreams in Mexico.

Cemex's response to this problem accompanied its dispatch of the Patrimonio Hoy pro-

gram, which moved the direction of concrete from a useful item to the endowment of dreams.

When individuals purchased concrete they were on the way to building rooms of adoration,

where giggling and bliss could be shared — what better gift could there be? At the establishment

of Patrimonio Hoy was the customary Mexican arrangement of tandas, a local area investment

funds plot. In a tanda, a gathering of people contributed a little total every week for a long time.
In the primary week, parcels are attracted to see who "wins" the pot in every one of the ten

weeks. All members win the 1,000 pesos one time just, however when they do, they get enough

to make a huge buy.

In conventional tandas the "triumphant" family would spend the bonus on a significant celebra-

tion or strict occasion like a sanctification or marriage. In the Patrimonio Hoy, the champ is coor-

dinated toward building room increments with concrete. Consider it a wedding vault, then again,

actually as opposed to giving flatware, for instance, Cemex situated concrete as a caring gift.

At its presentation, the Patrimonio Hoy building materials club that Cemex set up comprised of a

gathering of around seventy individuals contributing on normal 120 pesos every week for quite a

long time. The victor be that as it may, didn't get the absolute aggregate in pesos but instead got

the same structure materials to finish a whole new room. Cemex supplemented the rewards with

the conveyance of the concrete to the champ's home, development classes on the most proficient

method to adequately assemble rooms, and a specialized guide who kept a relationship with the

members during their venture. The outcome: Patrimonio Hoy members construct their homes or

augmentations multiple times quicker at a lower cost than the standard in Mexico.

Though Cemex's rivals sold sacks of concrete, Cemex was selling a fantasy, with a plan of action

including inventive financing and development ability. Cemex went above and beyond, tossing

little celebrations for the town when a room was done in this manner supporting the satisfaction

it brought to individuals and the tanda custom.

Sources:
Pro, E. (2020, June 4). Solved blue ocean : CEMEX: Transforming a basic industry company
strategy case study solution. EMBA Pro for Executive MBA Professionals. https://
embapro.com/frontpage/blueoceananalysis/17085-cement-cemex

Red ocean vs. blue ocean strategy. (2020, May 26). Blue Ocean Strategy. https://www.blueo-
ceanstrategy.com/tools/red-ocean-vs-blue-ocean-strategy/

CEMEX strategy: To serve the impoverished - The strategy story. (2021, May 9). TheStrategyS-
tory. https://thestrategystory.com/2021/05/09/cemex-strategy/

(n.d.). AU Digital Research Archive |. https://dra.american.edu/islandora/object/auislandora

%3A10035/datastream/PDF/view\

Blue ocean strategy with Harvard business review classic article “Blue ocean leadership” (2
books). (n.d.). Google Books. https://books.google.com.do/books?
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