Blue Ocean Strategy

651 Words3 Pages
BLUE OCEAN STRATEGY Blue Ocean strategy is a case study which in detail explains how industries in this world differ from each other. In this case study I came across a classification of industries. The industries were categorised in to two groups- blue oceans and red oceans. Blue Ocean is a category of industries that have emerged in untapped market space, which has large probability for high profitability growth. When an industry enters a new zone or field where there is no competition and when that industry becomes a trendsetter, it will come under Blue Ocean. The red ocean is the category where many industries have already been established in the same area of interest. To explain the blue ocean strategy a perfect example would be the Apple.inc’s iTunes. During the year 2003 many music lovers downloaded music from the internet illegally from illegal music file programs such as Napster and LimeWire. It was in this time that Apple moved into the digital music space as a provider and distributor of music content. This came as a signal to the end of the previous innovation, the CD which was largely used to save music. Apple came up with a new technology and created iTunes as an online service where people could download legal, high quality songs for a very reasonable price. With the advent of this technology (iTunes) and the ease with which music was available digitally for download, the trend toward digital music was clear. This trend slowly opened up the fast growing demand for MP3 players that played mobile digital music, such as Apple’s iPod. This way, Apple moved into a completely new field setting new trend. Capitalizing on the formation of iTunes, Apple further went on to launch the iTunes online music store. Until that point, no other company had been able to establish such a user-friendly system for online music content curation and distribution. Apple

More about Blue Ocean Strategy

Open Document