Blue Ocean Strategy Vs Red Ocean Strategy
December 27th, 2005
A nice management strategy model by W. Chan Kim and Renée Mauborgne …I wonder if Apple is following this strategy model …There are lot of MP3 players in the market before Apple released the much hyped IPOD… It created a new market by releasing this nice and tiny gadget which can do lot of other stuff other than just playing Mp3 songs….till few months back it didnt have any competitors (uncontested market space !!)…its sales figure clearly show that it has dominated the market and made the competition irrelavant….by the time the other companies entered the space of harddisk based Mp3 players, Apple released IPOD Nano ( flash based) …Again Apple opened another new market..flash based …created a new demand with customers ….Apple IPOD has created so many applications like I-Trip, Voice Recorder etc..and new markets are emerging ..for example , Video IPOD….If my memory is right..Apple has teamed with NBCII to broadcast some of its shows and news in portable format …no wonder it will be subscription based ..but it has opened new streams of revenue…
Apple was sucessful in creating the market, open new streams of revenue, align it with companys goals..but its pricing model isnt still good..it has to slash down the prices even more….Intel for example, cuts back prices heavily when it releases new stream of processors……
Apple should do the same …..
Entry Filed under: Management
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