Leo Scyllard
In the conditions of post -Soviet insurance markets, the Blue Ocean Strategy can confidently be called one of the most potential and effective strategic management tools. However, judging by the publications in the field of insurance and my expert conclusions as a business trainer who conducted more than 180 seminars and workshops in five countries, a significant part of the insurers either does not use it at all, or does it unconsciously. Both the first and the second leaves, outside the practical application, those enormous opportunities for insurers who are nearby. They just need to find and apply them. But before considering successful examples of the application of this method, it is likely to understand its essence.
Blue ocean strategy. The authors expressed its meaning in the recommendation: “Do not enter into a competition – make it irrelevant”. It looks like this in shape:
The business environment consists of two types of oceans – red and blue.
Reds are fields of traditional competition, where success consists in victory over business colleagues.
Blue – uninitiated areas of the market that require bold search and development, but give the opportunity to rapidly growth and get high profit.
The best way to win in competition is to work where it is not yet.
Graphically presented in Figures 1, 2, so, in Figure 1 – the Blue Ocean. Undeveloped areas (segments, fields) of the market. Competition is practically absent. However, over time, the number of sentences increases, competition is growing. The ocean turns into a field of competitive battles, its color is vigorous, and over time it becomes bloody. In this situation, the Blue Ocean strategy implies instead of battles in the mastered market (in insurance – tariff, bonus, motivational “battles for the client” of the output of customers and specialists, etc. p.to find your own blue ocean and become the only one on it at first, and then the first, until the period of tough competition. And then all over again. The authors brought the results of the application of the Blue Ocean Strategy 108 organizations in the table.
It follows from the data of the table that the use of the Blue Ocean strategy in the above indicators gives the effect of an increase in comparison with the traditional methods of conducting business under the article “income” – by 3, 8 times, and under the article “Profit” – at 9, obviously, agitize for the method Excessively.