Disruptive product innovation strategy: The case of portable digital music player

In today's business world, many companies are in search of an innovative strategy to move on to a market where there is as yet no competition. In view of that, many academics and managers are trying to find a systematic framework for a strategic innovative business model. One of the examples of a systematic framework is Blue Ocean Strategy (BOS), which provides various tools for managers to find a gap in an existing market or to create a new market where there is no competition. This chapter uses Apple's iPod product chain to illustrate how BOS tools can be used to create an innovative strategy for two reasons. Firstly, there are few practical examples that illustrate the BOS, as it is a recent business model and so this chapter can be a useful illustration for those audiences who are interested in strategic innovations focusing on disruption. Secondly, the iPod is a great example of an innovative product where the manufacturer benefits from low competition, high market share, and high profit return.