THE HUBMASTER INNOVATION
The Cirque du Soleil, a circus company that was founded by street performers in 1984, increased its revenue fold by 22 from 1994 to 2004 1, staging dozens of productions to approximately 40 million people in 90 cities around the world. This exponential growth in an industry, that was and is on the decline, reinvented business strategy and served as an inspiration to other companies. The HUBMASTER´s invention and strategy was designed to replicate that of Cirque du Soleil- Blue Ocean.
A Blue Ocean strategy is present in a business realm that has two types of spaces- blue and red oceans. In red oceans, industry boundaries are defined and accepted, and the competitive rules of the game are well understood. As more players enter the market, prospects for growth and profit decline, making bankruptcy a possibility, hence making the ocean bloody and red. On the other hand, blue ocean uncontested market place- the industries not in existence today. Here, demand is created rather than fought over. One of the ways Blue Ocean can be created is within the red ocean. This is what the HUBMASTER did by incorporating the characteristics of Blue Ocean by making a design that is part forklift and part stacker crane.
The most important characteristic of the HUBMASTER that shows its Blue Ocean is the elimination of the traditional strategy that there is tradeoff between value and cost. According to the traditional one, a company must choose between differentiation and low cost. However, the HUBMASTER, just like other Blue Ocean companies, achieves differentiation and low cost simultaneously.
To see how this works, let us look at the objectives of the HUBMASTER created by BASSTECH Engineering Group. The forklift industries scale one another and maximize market share by stealing customers from different players. Many players have done this by altering features in the forklift. For example, 2015 has seen a rapid decline in the use of internal combustion forklifts and increase in the use of electric forklifts. Different forklift companies plunged into the manufacturing them as soon as possible to keep up with competition. Now, here comes Basstech. Instead of modifying and offering the product to solve a problem- an intralogistical device with additional features- it reinvented the value added by offering a device that is part stacker crane and part forklift. The combination offers all the functions of a forklift and the safety assurance of a stacker crane.
BASSTECH addressed many disadvantages that the forklift presented. The biggest one was that forklift accidents were frequent and the cost associated with them were notoriously high. Not only did companies have to pay fines to different safety agencies but also deal with downtime which turned to be very harmful to the production line and reputation of the firm. Moreover, firm would have to repair damages caused by accident and consider occasional wear and tear of flooring by wheels of the forklift.
Even though electric forklifts have its advantages, it had some serious limitations. Firstly, if the forklifts were out of power, they have to be out of service for charging. So if a company has forklifts that need recharging during working hours, it has to make sure that there are additional forklifts to replace the out powered ones, which means additional investment. The HUBMASTER tackles this problem since it is stationary and uses electricity 24/7. Secondly, the caliber for heavy load is seriously compromised with electric forklifts. This reduces the life of the battery, something not to worry about with the HUBMASTER.
BASSTECH saw that the lasting elements of efficient intralogistics come down to these factors: maximum safety, flexible mobility, low maintenance, maximum visibility and continuous electricity. So BASSTECH took the forks and steering components of a forklift, and attached it to the mast and rail mounts of a stacker cranes, creating the HUBMASTER. Red Oceans have dominated the choice of strategy in the intralogistics industry but BASSTECH’s blue ocean strategy is contributing to balancing the scale of the two oceans.