Fluorescent Group: Blue Ocean Shift
(4 pages of text)
Fluorescent Group (Fluorescent) was an Indian company specializing in manufacturing filament products that were used in incandescent light bulbs. It had been a market leader for over 30 years, and by 2017, it had seven group companies and over 400 employees. Its filament products were exported to 15 countries and sold in the domestic market. However, the group’s chief managing director had begun to embrace the concept of wellness and believed that the wellness industry might be an attractive future business option, since it offered ideal remedies for people leading hectic and stressful lives in the large cities of India.
Changes in the lighting industry meant the market for Fluorescent’s filament products was in decline and was no longer generating profits. Should Fluorescent simply adapt to the changes in the lighting industry and manufacture LED-related products? Or should it support only a few custom orders for the lighting industry while venturing into the manufacturing of blue water equipment? Alternatively, should it consider exiting the lighting industry entirely and manufacturing only wellness products like blue water equipment or rejuvenation centres?
This case can be used in a strategic management course or module at the graduate level. It is suitable to present to students during the last few classes of the course, after teaching the basics of the strategic management process, competences, environment, industry analysis, strategy analysis, and alternatives. After working through the case and assignment questions, students will have developed their ability to
- explain how to create a blue ocean market space, where competition is irrelevant, out of a red ocean or competition-intensive market space;
- describe the blue ocean shift process; and
- conduct a risk analysis in the context of a blue ocean shift, while evaluating strategic alternatives
India, Medium, 2017
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