Chennai:
After the global economic downturn, businesses are trying
to re-invent themselves and focusing on creating new demand in uncontested
marketplace by innovation to survive.
Termed as Blue Ocean Strategy, this has been one of the
secret for the growth of Murugappa Group, which decided to experiment it.
Disclosing this during The Cutting Edge Series 3 of The
Southern India Chamber of Commerce and Industry, Murugappa Group executive
chairman A Vellayan recalled how the business of his group succeeded after he
looked beyond the usual business mode.
Terming the earlier business strategy as Red Ocean, which
is full of competition where supply exceeds demand and growth is limited,
Vellayan said the innovation started when his group, which is into fertilizers,
began to think on helping the farmer grow in order to spread their business.
“When farmers are not making money, then whom are we
going to sell the fertilizers and this helped change our business strategy,”
said Vellayan.
He said the mantra was to reach out to farmers and try to
understand what they really want as such the group started extended rural
retail business besides offering solutions to farmers.
The result was shown after three years as the company
posted profit. Citing other examples like turning municipal compost to
fertilizer or turning gypsum, generated while manufacturing phosphoric acid, to
a building material, he said the success lies in innovative thinking.
Prof S George Eapen, Practice of Management, INSEAD said
Blue Ocean Strategy by firms can only materialize if the leadership
participates. He also said innovation in a firm is everyone’s job and it does
not pertain to only chief executive officers. He said firms should try to look
for opportunities outside space and reach beyond existing demands.
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