Author(s): W. Chan Kim, Renée Mauborgne, Oh Young Koo
This case introduces the application of blue ocean strategy in the context of managing a business portfolio at the corporate level. Apple created future profits and growth not by exploiting existing demand, but by reconstructing industry boundaries to create new market space and unlock latent demand. As a result, the company’s value grew exponentially as the total market value of a firm reflects not only today’s performance but also its future profitability. The case examines a series of blue ocean strategic moves at Apple, Inc. that transformed the company from a computer manufacturer into a consumer electronics powerhouse.
To illustrate how future growth and untapped demand can exist in an uncontested market space and that a company should break and reconstruct the industry boundaries to create it.
To implement blue ocean strategy balanced with red ocean strategy in managing business portfolios within a corporation.