Dharmesh Shah explains Apple's iPod success: they didn't build the best MP3 player, but targeted non-consumers who weren't using digital music yet. They simplified the experience, partnered with content producers, and created a seamless ecosystem for downloading songs and handling copyright.
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When Apple released the iPod, they did not say, we're gonna create the best MP3 device. They said, we're going to go after the non-consuming mere mortals that are not enjoying digital music but should be. And as it turns out, more often than not, when you ask yourself the question, what do you have to do, the answer is not build a better X. The answer is build a simpler X. What's keeping people out is not some feature. What's keeping people out is because it's too hard to get into the game. So what Apple did is said, oh, we're going to build a simple device. We're going to have partnerships with the content producers. We're going to have this network, essentially. We're going to have this way you can download songs and we'll take over all the copyright and we're going to do this and it's going to allow millions of people to enjoy digital music. And so as you go back and you think about your businesses, I think just about every industry, there are always opportunities, blue oceans of unserved customers that should be enjoying whatever you have to offer but aren't yet.
