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.

This case chronicles the development of the market for electronic books – the success of Amazon’s Kindle reading device, and Apple’s April 2010 launch of the iPad for e-book reading and also for watching videos, surfing the web, etc. The broader context is the book publishing industry and how e-books and e-readers affect its dynamics.

The (A) case involves a strategic alliance between an electric utility and a firm developing pollution control technology under considerable regulatory and technological uncertainty. The deal structure involves a licensing agreement and a minority equity purchase structured as an option.

The (B) case concerns the implementation of the alliance.