Mkt 421 Blue Ocean Strategy Paper
Blue Ocean Strategy Paper
MKT/421
The Blue Ocean Strategy
The blue ocean strategy in marketing is an approach to building a customer base looks to build an entirely new market segment that does not currently exist with other firms. Perfect competition consists of a myriad of competitors in the same industry that are fighting with each other over their slice of the market by offering similar products or substitute products for innovations that already exists. A “red ocean” describes a marketplace where firms are rigorously competing with each other simply to gain a greater percentage of consumers within the existing marketplace. The Blue Ocean Strategy argues that innovative companies will advance, not by battling competitors, but by strategically creating …show more content…
Steve Jobs, former CEO of Apple, Inc., has always been considered a pioneer in the technology industry. He had a knack for creating products that was different and innovative over anything else available in similar industries. At the time when the only access to digital music on the Internet was through piracy sites, such as Napster, Mr. Jobs created an alternative that was acceptable to both music producers and music consumers when he introduced iTunes to the marketplace in 2003. iTunes procured the means of acquisition and distribution to offer legal, easy-to-use and flexible à la carte song downloads. This innovation allowed buyers to freely browse and listen to thirty-second samples prior downloading an individual song or an entire album. By allowing people to buy individual songs at reasonable prices, iTunes created an remarkable solution to a key customer annoyance plaguing the music industry where customers were forced to purchase an entire CD when they wanted only one or two songs from that CD (Brooks,
MKT/421
The Blue Ocean Strategy
The blue ocean strategy in marketing is an approach to building a customer base looks to build an entirely new market segment that does not currently exist with other firms. Perfect competition consists of a myriad of competitors in the same industry that are fighting with each other over their slice of the market by offering similar products or substitute products for innovations that already exists. A “red ocean” describes a marketplace where firms are rigorously competing with each other simply to gain a greater percentage of consumers within the existing marketplace. The Blue Ocean Strategy argues that innovative companies will advance, not by battling competitors, but by strategically creating …show more content…
Steve Jobs, former CEO of Apple, Inc., has always been considered a pioneer in the technology industry. He had a knack for creating products that was different and innovative over anything else available in similar industries. At the time when the only access to digital music on the Internet was through piracy sites, such as Napster, Mr. Jobs created an alternative that was acceptable to both music producers and music consumers when he introduced iTunes to the marketplace in 2003. iTunes procured the means of acquisition and distribution to offer legal, easy-to-use and flexible à la carte song downloads. This innovation allowed buyers to freely browse and listen to thirty-second samples prior downloading an individual song or an entire album. By allowing people to buy individual songs at reasonable prices, iTunes created an remarkable solution to a key customer annoyance plaguing the music industry where customers were forced to purchase an entire CD when they wanted only one or two songs from that CD (Brooks,