Apple Blue Ocean Strategy

Order 100% Plagiarism Free Paper Now

Apple blue ocean strategy. Blue ocean strategy is defined by the need to make the competition irrelevant as opposed to fighting competitors. In this case, with blue ocean companies concentrate on creating demand that is elusive or does not exist in the market. The blue ocean strategy stems from the fact that a certain latent potential of the marketplace is yet to be unraveled. However, many blue oceans are fashioned from within red oceans through the expansion of existing industry boundaries. Finding the right market prospects is the key to the success of the blue ocean strategy in making the competition irrelevant.

The iPod is the perfect example in the execution of the blue ocean strategy. The introduction of iPod was quite disruptive in the way people to consume music. By looking beyond the market at that time, Apple introduced a product that created a new industry in and of itself. The blue ocean strategy is driven by the five variables below.

Creating new markets by breaking out of the competition

Making competition obsolete

Creating new demand

Break cost-value tradeoffs

Pursuing differentiation and pricing

Apple Blue Ocean Strategy