Apple with its disruptive innovations like iPod, iTunes, iPhone, iPad, iCloud have not only fascinated the customers but also made these devices an integral and essential part of their lives.

1. Analysis& Outlook
Rajesh Prabhakar AnalystBio @ http://analysiscasestudy.blogspot.com/
Apple with its disruptive innovations like iPod, iTunes, iPhone, iPad, iCloud have not only
fascinated the customers but also made these devices an integral and essential part of their lives.
Customers feel Apple products as completely new despite the fact that smartphones, MP3
players, online music stores existed even before Apple developed them and also customers feel
Apple products and services resolve problems and make their lives better. Apple markets its
products based on functionality and usability not on the technical specifications of products as
compared to its competitors the technical specifications are weak. For example iPad processor
compared to competitors’ tablets is comparatively slower but Apple focused on the thinness and
light weight of product to cover the weakness. Apple has also been successful to take advantage
of its ecosystem and offer products that seamlessly worked and made the customer’s life easier.
Apple initially began as Personal Computer manufacturer like Macintosh computers but now its
product portfolio is dominated by iPhones, iPads and iPods. It is also argued that Apple is more a
design-driven company rather than a technology-driven company and it created products that are
far beyond customer’s expectations and thinking. Basically Apple creates a product that
customers do not expect, build a need for the product among customers and quickly scale up the
market and in between make life difficult for their competitors as competitors struggle to keep up
with Apple’s products thereby losing market share to Apple.
In an interview published in Forbes, Dan Schawbel interviewed W. Chan Kim, the BCG Chair
Professor of Strategy and International Management at INSEAD, Co-Director of the INSEAD
Blue Ocean Strategy Institute and co-author of Blue Ocean Strategy Book, said “Our study
shows that blue ocean strategy is particularly needed when supply exceeds demand in a market.
This situation is applying to more and more industries today and will be even more prevalent in
the future. Let me illustrate this using the example of Apple. The company was once a PC maker
in a mature and unattractive industry. By making a series of blue ocean strategic moves such as
iPod, iTune, iPhone, and iPad, Apple not only achieved sustained profitable growth, but also
revitalized the declining consumer electronics industry. Apple achieved its success not by
investing in what was hot in the marketplace, but by making strategic moves to lead and shape
the evolution of a declining industry. From the perspective of blue ocean strategy, companies
seeking profitable growth should not focus their efforts on identifying an existing lucrative
market, but should set out to create and capture one.” Apple has consistently redefined the
industry boundaries, created uncontested market space and its products and services always
focused on delighting customers and making them essential part of their lives. Apple products
eliminates the problems, raises the functionalities and expectations of customers, reduces the
problems of usage and creates a need for the customer and make them use their products for long
time. Apple profitability and revenue growth can be directly attributed to Blue Ocean Strategy
and company constantly needs to find Blue Oceans in Red Oceans so that it continues its
profitability growth. Without its charismatic founder Steve Jobs, company has to continue its
journey of creating new products and services and fascinate customers.
Blue Ocean Strategy Apple Inc. – Essential to survive in Crowded & Oversupply Market