RENAISSANCE STRATEGY: THE ART AND SCIENCE OF MAKING THINGS HAPPEN
- Juan Carlos Erdozain Rivera, MBA
- 21 minutes ago
- 8 min read
By Juan Carlos Erdozáin Rivera, Senior Management Advisor
INTRODUCTION: THE RENAISSANCE OF STRATEGY
Publishing about strategic thinking today ironically requires looking back in order to see the future clearly.
In my daily practice as a Business Consultant , I have confirmed that purely linear solutions are no longer sufficient. Today's challenges are not solved solely with algorithms, but with a mindset we thought was forgotten: that of the Renaissance Man .
That polymath who, like Da Vinci, saw no boundaries between science and art, is today the archetype of the modern strategist. This vision is embodied in the STEAM System ( Science, Technology, Engineering, Arts & Mathematics ), a framework I apply in Boards of Directors to orchestrate decisions.
It's not just about numbers (Math) or processes (Engineering), but about the ability to integrate human sensitivity and creativity (Arts) to anticipate disruptions.
The phrase "the art of making things happen" resonates with the essence of strategic thinking , which is not limited to planning, but seeks tangible results.
"INNOVATION IS THE PROCESS THAT TRANSLATES KNOWLEDGE INTO GROWTH AND SOCIAL WELL-BEING"
In this article, we'll explore how that Renaissance curiosity and the ability to connect seemingly unrelated dots are the true tools for managing a company's life cycle and driving innovation before maturity turns into decline. It all started with a spark of light in the rain...
THE STORY OF BACO
Under a persistent rain, while driving along the Mexico City ring road , my gaze fell upon a symbolic contrast: the darkness of the night against the unmistakable glow of the "Baco" sign. Even with the car moving, I couldn't help but capture that image of the famous corner, seemingly immune to the passage of time, because more than seeing the light of an advertisement , I saw the "clarity of vision" of Baco.
That illuminated sign is more than just advertising; it's a testament to resilience and positioning . For decades, this school and office supply factory has stood there, reminding us that in a world of constant disruption, setting a course and maintaining a strong presence is what defines the brands that make things happen .
BACO: STRATEGIC RESILIENCE IN THE AGE OF DISRUPTION
Baco defines itself as an institution: "A pioneering company in the stationery business in Mexico, founded in 1943. Over decades we have built one of the leading factories of school and office supplies... we remain as fresh and motivated as in our beginnings... always at the forefront of manufacturing and distribution processes . "
Capturing the photo of their iconic advertisement in the rain took me back to the years when I had the honor of presiding over the National Association of School and Office Supply Manufacturers (ANFAEO) . At that time, we commissioned an in-depth and insightful market study from the firm Consensus , led by Laura Gutiérrez Santibáñez.
The findings were fascinating from a strategic thinking perspective. We detected a brand confusion phenomenon: consumers often mixed up the name Baco with that of Acco Brands , a global giant and its direct competitor.
Faced with this positioning challenge, the response was a stroke of communication genius. Edgar Urich-Sass, then head of the firm, decided to capitalize on this confusion with a slogan that became part of the collective consciousness:
"Baco, with a B for Good (Bueno)" .
This anecdote teaches us a lesson about Competitive Intelligence :
Interpreting information is not enough; it's not enough to know that there is confusion; you have to use that data to create value.
Making bold decisions, the slogan not only differentiated the brand, but also gave it a unique quality attribute in the market.
It is undeniable that we live in an era of constant disruption . The "Digital Age" has profoundly impacted this industry; however, a strategic thinker observes the bigger picture .
In Mexico and much of Latin America, socioeconomic conditions maintain a strong demand for traditional items. As long as the digital divide persists, there will be room for incremental innovation in stationery products. For our friends at Baco , this is not just a market opportunity, but validation that, with a clear vision, it's possible to continue "lighting the way" in any environment.
THE LIFE CYCLE OF THE SCHOOL AND OFFICE SUPPLIES INDUSTRY
The School and Office Supplies Industry is in the MATURITY phase.
Here is the justification for this location using the chart above as a reference:
Consolidated Market (Maturity Phase)
This industry has already gone through the "Take-Off" and "Rapid Growth" phases. The use of notebooks, pencils, and folders is universal and stable. There isn't exponential growth in new users; rather, demand is consolidated.
Intense Competition and Stability
As the Maturity phase in the graph shows, it's a stage of "Stability" where competitors are clearly identified (like the case you mentioned of Baco and Acco in Mexico). The competition isn't about acquiring new customers, but about maintaining market share.
Vulnerability to Replacement (Towards Decline)
This is the current strategic key. Although it is in Maturity, the industry faces the direct threat of "Digitalization" or the "Digital Age," which acts as a substitute. Tablets and laptops are replacing paper. This means that the industry is operating in the final part of Maturity, very close to the dotted line that marks the beginning of Decline .
In conclusion, according to the chart, the School and Office Supplies Industry is in the MATURITY stage, but with a strong trend toward DECLINE due to technological disruption (Digital Age). Its strategic challenge is how to extend its life cycle or reinvent itself before the decline becomes steep.
THE POVERTY INDEX HELPS THIS INDUSTRY
The poverty index in the region, far from being merely an indicator of deprivation, acts as a determining factor that revitalizes and preserves the business model of "neighborhood stationery stores." This independent format persists and thrives by serving segments of the population with low and middle incomes, where proximity is not a luxury, but an operational necessity for the consumer.
For this type of customer, local stationery stores represent a crucial competitive advantage based on three pillars:
🔵Personalized attention, direct advice that is rarely found in mass formats.
🟡Capillarity and Travel Savings, avoid the cost, time and "cumbersome" journey to large self-service stores, which are often outside your daily mobility radius.
🔴Specialized Assortment Depth: Paradoxically, while large retailers offer a limited and seasonal selection of office and school supplies, independent stationery stores maintain a diversity of items that meet specific needs throughout the year.
In this context, the economic barrier to full digitalization in these areas ensures that pencil and paper remain fundamental tools, and that the local shopkeeper remains a key player in making things happen in the daily lives of millions of families.
According to data from ANFAEO (National Association of School and Office Supply Manufacturers), the pre-pandemic outlook for the stationery retail sector in Mexico was robust, with an ecosystem of 120,000 points of sale distributed among traditional stores, specialized chains, and general merchandise stores with school supplies. However, the systemic impact of the health crisis and the resulting effects on the industry have caused an alarming contraction , resulting in the permanent closure of between 20,000 and 25,000 businesses to date.
The business intelligence provided by ANFAEO underscores the speed of the collapse: in the critical period between March and July 2020 alone, the combination of economic pressures and mandatory lockdowns led to the bankruptcy and disappearance of 8,000 stationery stores . This crisis is not over; the surviving stores face an imminent risk of closure , as the peak back-to-school season —which traditionally began in July and represents a critical 70 percent of their annual revenue —has been severely disrupted, jeopardizing their financial sustainability and their ability to "make things happen."
🔵The traditional stationery store business model faces a critical structural challenge stemming from its extreme seasonality and limited scale . With an average surface area of just 43 square meters , these micro-businesses experience a drastic contraction outside of the school season, losing up to 70 percent of their usual sales volume . This financial reality presents owners with an existential dilemma: permanent closure or operational reinvention .
🟡Survival requires going beyond basic inventory supplies. A viable alternative is smart diversification , transforming the space into a hybrid point of sale that incorporates complementary categories with higher turnover and margins, such as personalized gifts, convenience items, and confectionery . This strategy not only stabilizes monthly cash flow but also maximizes profitability per square meter.
🔴However, the real long-term threat is not seasonality, but the systemic impact of the Digital Age , which acts as a direct technological substitute. Faced with this paradigm shift, the industry cannot simply react; it must find robust mechanisms for innovation .
🔵Cases like "Baco" demonstrate that the sector is trying to adapt, but for these efforts not to be isolated or inefficient, it is essential that the strategic thinker masters the taxonomy of innovation . Only by understanding the different types of innovation can efforts and resources be directed toward the areas with the greatest impact and potential return .
INNOVATION HAS DEGREES OF INTENSITY
1) Incremental Innovation: Customer-Centric Optimization
Commonly known as "Continuous Improvement of Products and Services," this type of innovation focuses on refining what already exists. Its driving force is not technological disruption, but rather actively listening to and interpreting the unmet needs of today's consumer. It doesn't seek to reinvent the wheel, but to make it more durable and useful.
Let's look at tactical examples in the stationery sector that demonstrate how small changes in process or design generate large operational advantages for the end user:
The Folder with Integrated Clasp: Tactical Efficiency
This product is a clear example of operational efficiency for the user. By integrating the fastening mechanism, it eliminates the need to purchase the traditional folder and metal clips separately (a traditional "Baco" product). It reduces the number of SKUs to manage and the assembly time, simplifying the filing process.
The Folder - Expandable Bag: A Comprehensive Solution
Here we see a far-reaching incremental innovation. This product not only replaces the traditional folder and "Baco" fasteners, but also eliminates the need for expandable accordion folders (traditional to the "Esselte" brand). By consolidating three functions into a single unit, it creates a comprehensive filing solution that maximizes utility for the customer without requiring a radical technological leap.
2) Disruptive Innovation: The "Hybrid Stationery" (Hybrid Hub)
🔵Disruption occurs when the market matures and a significant portion of customers reach the "saturation point"; they are no longer willing to pay for the excessive features or complexity of leading products. They prefer simpler, smaller, more accessible, and, above all, substantially cheaper alternatives, even if these initially appear to be of lower quality.
🟡It is the triumph of "good enough" over "perfect and expensive".
In the life cycle of the industry we are analyzing, traditional stationery faces the technological substitute of the Digital Age .
Disruption isn't about inventing a new type of paper, but about reinventing the business model : "Hybrid Stationery" is a product that combines essential physical stationery with a hub of accessible digital services . It's not aimed at the high-tech corporate segment, but at the "Forgotten Consumer" or "Non-Consumer" (such as students in rural areas or entrepreneurs in low- and middle-income communities). It's "good enough" technologically, but substantially cheaper and more accessible than buying expensive hardware.
👀 To watch the video clip (in Spanish), click on the image above or on the following link: https://youtu.be/27G6-_PKguA
"And you, are you operating under a continuous improvement model or do you dare to design the disruption of your own market?"
DISCHARGE THE NEW E-BOOK
In this document we detail the fundamental skills of a Strategic Thinker, as well as their implications in the Knowledge Age, their correlation with Business and Competitive Intelligence, as well as the foundations of creating new knowledge (Value Creation) that leads us to Innovation.
