Blue Ocean Strategy
July 28, 2014
Blue Ocean Strategy
When starting a business, there are several factors that an organization must consider. These factors include the type of product or service they would like to offer, the target market, as well as the price. New organization or organization is trying to recreate themselves also need to think about their competition. Competitors are the driving force for any organization; each company must one up the other in order to win the demand of consumers. When competition is too strong then, organizations must think outside the box and come up with new innovative ideas. There are several strategies that ...view middle of the document...
The blue ocean strategies create their own demand which leads to profit and reputation that last for a long time.
An example of a blue ocean strategy was Apple iTunes. Noticing the popularity of illegal sites such as Napster, Apple creates iTunes. At the time, there were many illegal sites where people could download music to their computer or mp3 players but not a legal site. Apple started iTunes in 2003 at this time people still had to purchase music from Cd’s to have the music available to them. Apple invented a way for people to download music at a reasonable price and also listen to it before they bought it. The company also change the way consumer had to purchase music instead of having to purchase an entire Cd to hear one song you could just purchase one song. The company also use their invention to help with other devices that they invent, for example, the iPad, iPod, and iPhone all need to sync with iTunes to stay updated. Apple provided all components, content, means of acquisition, mean of the distribution, and the device to create a blue ocean (Brookes, 2013).
Red Ocean Strategy
It is hard to determine an alternative strategy to Apple iTunes since the idea was so innovative. The only alternative red ocean strategy to iTunes online store would have been a regular music store or online music store to purchase Cd’s. The problem with this idea is that the organization would...