A ‘red ocean’, in contrast, is the opposite of an uncontested market – rife with competition and industry pressure.įor this reason, discovering blue oceans requires a certain level of innovation. The second goal of pricing is to keep margins at a reasonable level so as not to invite too much competition. The pricing strategy tends to have a singular focus: finding the perfect equilibrium that will allow mass markets to be captured.Īlthough there was no other gadget that customers could compare the iPod with, the price still needed to match what they were accustomed to paying for high-tech gadgets. Determining what consumers will be willing to pay for a product that has not previously existed is much more difficult than studying competitor prices and then discounting by five per cent. Pricing in particular is just as critical as it is tricky. Instead, the focus tends to be primarily on marketing, distribution and pricing.

The Wii console faced little, if any, competition because it offered a unique gaming experience.īusinesses employing such an approach may even not have a fully formed competitive strategy because there is no direct competitor – at least initially. Had Nintendo decided to compete with Sony’s PlayStation or Microsoft’s Xbox, it would have been a constant uphill battle.

Instead, the Wii created its own market and successfully exploited it. In the same vein, the Nintendo Wii gaming console was also a brand new product that did not go after existing markets. Instead of competing with other music players, Apple created a new market altogether for trendy players that doubled as fashion statements. When it was first launched, the iPod offered the easiest way to purchase individual songs online and enjoy music on the go through a simple process.

Apple’s iPod is the prime example of a product that is a result of pursuing this strategy. The blue ocean strategy is aptly named because it advocates a similar concept where businesses explore new horizons rather than pursuing existing ones. The idea was to go where no one had gone before in hopes of finding what no one else had found. When Christopher Columbus set out to sail, he did not know he would discover the Americas, or for that matter whether he would find any land at all.

Blue Ocean Strategy for android instal