Blue Ocean Strategy : Ipad and Kindle Fire
This analyzes why Ipad and Kindle Fire are Blue Ocean products as oppose to Red Ocean products. Apple achieved a value innovation with Ipad, which led to the creation of a new market space. Apple drew the boundaries of the space by educating the customers on its usability. Amazon with its recently launched Kindle Fire targeted non-Ipad users and defined its own space by designing Kindle Fire as a media consumption device with salient features empowered by Amazon’s massive media platform, hence made the competition irrelevant.
Blue Ocean strategy is simply creating an uncontested market space and defining its boundaries rather than competing in the confines of an existing industry. When Apple launched the Ipad, it did not invent the tablet space, however, it did not target tablet users either. Ipad redefined the consumption of computing devices and reached to millions of people who initially did not know that they needed an Ipad.
Amazon differentiated its new tablet Kindle Fire with simplified yet focused features. Kindle Fire does not carry costly features of a traditional tablet such as camera or gps, instead leverages its own including the Silk cloud browsing. Together with Amazon’s massive content offering, Kindle Fire is creating a new market with a strong focus on media consumption, rather than fighting for Ipad users.
In sum, both Apple’s Ipad and Amazon’s Kindle redefined the industry buyer group instead of competing to better serve the existing buyer group. They achieved this by creating value innovation and reaching beyond existing demand.
Apple achieved a value innovation with Ipad by focusing on the market and user itself. Apple won the untapped demand in the market by redefined the way the user interacts with a tablet. Ipad integrated in a single piece of equipment the versatility of many individual products such as desktops, laptops, iphones, and kindles and...
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