Strategic Analysis Of Chan Kim And Mauborgne's Blue Ocean Strategy

6571 Words 27 Pages
Register to read the introduction… Apple Inc. is in some respects a contradictory company when it comes to its strategic analysis for its expansive product mix delivers in more than one “ocean”. For the purpose of this strategic analysis (and recommendations for the future) specific example’s will be given where Apple Inc. has gained a competitive advantage by defining their own unique Blue Ocean. Chan Kim and Mauborgne (2005) provide a fundamental analytical tool to analyse Apple’s competitive strategies. This methodology comprises 5 formulation and execution principles to competitive advantage. They are as …show more content…
Concurrently the iTunes store has the largest downloadable content on the internet . It provides a catalogue of eight million tracks, two thousand films (total downloads daily average are in excess of fifty thousand) and twenty thousand TV episodes (Anonymous, 2010c). Prime Facie analysis reveals that the popularity of iTunes cannot be solely attributed to the product delivery; but a concurrent innovation and integration with the portable products that Apple has created over the last decade. It could be argued that the iTunes blue ocean was strengthened by the continual improvement in storage size and screen resolution quality of it iPod and iPhone range. Apple Inc. can now be seen entering its next stage in differentiation. To do this Apple Inc. has introduced the iPad (Feb 2010); revolutionising tablet computing. Building on its iPhone operating system, Apple is attempting to reconnect with business people. Unlike iTunes, iPad services will not be the low price of music downloads. Apple will attempt to lure high profile media conglomerates to allow subscription through their iTunes service at a higher premium price (Yoffie & Kim, 2010). Even though news articles are sold at a premium price; the ability to distribute them via iTunes gives Apple Inc. a low internal cost. The most recent venture by Apple Inc. to create a unique user experience the creation of multiplayer online gaming on the iPhone; multiplayer gaming traditionally has been the domain of PC and console developers (Gametraders, 2010). With this venture Apple Inc. hopes to refine how people play games with each other. iPhone customers will have the capability to game wherever they can take their iPhone (Apple Inc, 2010a). This strategic move can be seen as a blue ocean for Apple Inc. which will provide a service no other mobile phone provider offers with the quality of the gaming experience. In addition to this Apple Inc. are not actually

Related Documents