Apple Computer became one of the most "hot" in the digital music industry in just three years. Behind this resurgence is the growing success of iPod and iTunes, its "virtual store" music. Since launching the iPod in October 2001, Apple has sold over six million units and captured over 60 percent market share in digital music players. Since players were simple and flights before the iPod came on the scene. Nor were few but relatively large, the players
MP3 s most sophisticated and powerful that in many cases, they could store and play up to 5,000 tracks. And as the business of digital music downloads, then, no one seemed willing to pay for "download" their equipment companies like Napster digitalizadas.Algunas songs were inspired music lovers more "awake" who did not hesitate download the songs of your choice worldwide, free, and illegally. In 2003, they moved 2,000 million illegal files. Despite efforts to counter the phenomenon, industry remained illegal, though not strictly limited profitable customers more "technical." To achieve success in both industries, Apple is not devoted to "steal" customers to existing operators. By contrast, significantly increased the demand to convert the mass of customers not little addicted to the technology in very good customers. At the same time, Apple launched a powerful advertising campaign by word of mouth for their products, irresistible and outstanding. To fully understand what Apple achieved, imagine a market divided into two types of oceans: one red and one blue. The red represents ocean to all industries that exist today. In the red ocean, companies struggle to overcome his rivals in capturing a greater share of existing demand. As they face and compete aggressively, red often becomes bloody, and the expectations of both earnings and growth, are reduced. The main strategic thrust is then to benchmark competitors seamless and, of course, try to overcome them. In summary, which determines the strategic agenda in this scenario, it is always competition. Blue oceans, in contrast, are defined as those untapped markets, which offer an opportunity for highly profitable growth. Are deep, and are practically intact, largely unexplored. Companies that open blue ocean, as did Apple, strive to become irrelevant to the competition after a jump of value to both customers and the company. What ocean is "anchored" their strategic thinking? Blue ocean strategy, sets the level of profitable growth that occurs as a result of the creation of blue oceans. Blue oceans are based on innovation, in value, that is, to link innovation to know what the mass of buyers valued. The evaluation of more than 30 industries, which reviewed more than 100 years information, we confirm. Always the same thing happened, the technology proved a crucial factor in creating blue oceans. In 1992, Compaq created a multibillion-dollar market with the launch of its ProSignia line, offering buyers double the capacity of storage and printing. That line showed a strong link between technology supply and what most valued guests. Get the link is not easy and is often the obstacle that most executives in technology tropiezan.Si wants to determine to what extent his idea will "float" on a blue ocean, ask yourself the following question: to what extent the technology that makes life offer buyers is decidedly more productive, simple or convenient, less risky, or fun and updated? If you can not respond quickly, in brief, precise and brilliant, his "ship" does not take the course that requires the creation of a blue sea.
W. Chan Kim. He is a professor at INSEAD, co-author of the bestseller Blue Ocean Strategy and analyst of events such as Apple.
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