Questions about Blue Ocean Strategy? Ask here.

[Loud_Hot_White_Box]

Sky Render said:

Hawkeye said:
Does the blue ocean strategy kill existing markets, or coexist. In other words, is the Wii going to choke PS360 to death the way DS has chocked PSP? I know the telephone killed the telegram, but video games may be like CD vs iTunes, where they coexist.

 That's a very good question, and the answer is "sometimes".  A lot of it depends on how well the new product does the job the market wants.  A particularly effective Blue Ocean that targets all groups can completely wipe out the existing market and replace it (as NTT DoCoMo did).  But most simply expand the existing market and reshape it slightly to match the new values.

 In the case of the DS and Wii, it's unlikely that they are going to eliminate the old market.  Their values are close enough to the old market that the markets will merge.  However, understand that this means the old market values that the new market doesn't embrace will lose priority.

I wish you would have said more directly that the DS isn't/wasn't/hasn't/won't choke PSP.