Assignment 6

Assignment 6

Name

Institution

Introduction

The paper attempts to explain the characteristics of three tiers of noncustomers form the book of Blue Ocean Strategy, in relation to Apple-iPad Company and explains characteristic of each noncustomer. The company can focus on worldwide customers and attract customers who did not exist before by following the blue ocean strategies (Kim & Mauborgne, 2013).

The three tiers of noncustomers

There is no-hard-and-fast rule as to which noncustomer the Apple-iPad Company should value most since the scale of blue ocean opportunities reveals that a particular tier of the noncustomer can unlock and varies across time and industries. As a result, the company should put much focus on the tier that has the biggest catchment at the time while also examining where there are overlying commonalities in all the three tiers of noncustomers (Kim & Mauborgne, 2013).

The first tier noncustomers consist of customers who are soon to be noncustomers.  These types of customers use the current industry while offering minimal returns to the business while they continue looking for better options. As soon as an opportunity presents itself, they jump ship and leave the market. The Apple Company can create iPad products that the people want by themselves through value innovation by simultaneously pursuing product differentiation and low cost. The company can employ strategy canvas and the four action framework as analytical tools in order to eliminate reduce-raise-create grid and hence, reducing the gap of the noncustomer (Kim & Mauborgne, 2013).

The second tier of the noncustomer consists of the refusing noncustomers. These types of people either do not utilize or cannot utilize the current offerings in the market since find that the offering not acceptable or are beyond their needs. They tend to deal with their needs in other ways or ignore them. The company can apply.............