Low cost, scaled back yet very useful Microsoft-based PCs which can be purchased at prices that are less than half the cost of a Surface 3. Don't forget that before we had tablets we had netbooks. The market for inexpensive personal computing devices is filled with a lot of products.
it is being launched into a very, very red ocean. The Surface 3 has great specifications, a lot of adaptability and meets many user needs - and it is available at what appears to be a favorable price when compared with iPads.īut. Certainly a product which is competitive. If we look at the new Surface 3 we see what looks to be a very good product. Microsoft is a Red Ocean competitor - low end machines are Red Ocean market Obviously, the authors are not big fans of operational excellence and a focus on execution, but instead see more value for shareholders and employees from innovation and new market development. By focusing beyond existing market demands companies can identify unmet needs (needs beyond lower price or incremental product improvements) and then innovate new solutions which create far more profitable uncontested markets - blue oceans. On the other hand, companies can choose to avoid this margin-eroding competitive intensity by choosing to put less energy into red oceans, and instead pioneer blue oceans - markets largely untapped by competition. In this competitively intense ocean segments are niched and products are commoditized turning the water red (either the red ink of losses, or the blood of flailing competitors, choose your preferred metaphor.) Competition intensifies, features blossom, prices decline and the marketplace loses margin as competitors rush to sell cheaper products in order to maintain share. The thesis is that most companies focus on competing against rivals for share in existing markets. It became a huge best-seller, and remains popular today. Blue Ocean Strategy (Chan Kim and Renee Mauborgne) was released in 2005 by Harvard Business School Press.
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