'Blue
ocean' strategy considered by Jarlette
Friday, December 15, 2006 -- Craig Anderson
Jarlette is looking to the “blue ocean”
to distinguish itself as a long term care provider.
A provider with more than 30 years of service,
Jarlette owns 17 retirement and long term care residents in Central,
Southern and Northwestern Ontario.
The company brought together its home managers
and corporate staff recently in a consultant-led discussion about
the “Blue Ocean” strategy, a theory and organizational
strategy propounded by authors W. Chan Kim and Renee Mauborgn.
In their book, Blue Ocean Strategy: How to
Create Uncontested Market Space and Make the Competition Irrelevant
(Harvard Business School Press; February 3, 2005), Kim and
Mauborgne argue that organizations and companies typically resign
themselves to staying in a bloody, competitive “red ocean,”
trying to carve out a tiny niche in a shrinking yet over-crowded
marketplace.
The Blue Ocean approach, conversely, entails taking
an entirely different approach the marketplace or corporate competition.
It contends that the truly innovative organizations
establish themselves beyond the competition through “smart
strategic moves,” employing an inimitable business approach
coupled with unprecedented or widely appealing services or products.
For Jarlette, the process of looking at the strategy
was illuminating, says Sandra Fysh, Care Services Coordinator.
“It teaches you to think a different way
about your strategic direction,” says Fysh.
“In long term care we often don’t
think about our marketing strategies or specifically about customer
service,” says Fysh.
The Blue
Ocean approach, as stressed by the book’s authors, is
inherently not specific to industry, and rather rests on what they
dub the “strategic move.”
“Our analysis of industry history revealed
that the strategic move, and not the company or the industry, is
the right unit of analysis for explaining the creation of blue oceans
and the root of profitable growth. By strategic move we mean, the
set of managerial actions and decisions involved in making a major
market-creating business offering,” say Kim and Mauborgne.
Fysh explains that Jarlette will decide over the
next four to six months on how they plan to strategically “move”
to create their own blue ocean.
Fysh sees the innovative aspects of the Blue Ocean
approach as useful in many scenarios.
“The neat thing about this concept is that
it is not just applicable to business.”
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