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Companies have been competing based on how to gain the largest share of the market space, which causes intense competition with industry-wide over-supply, and even profit decrease in the case of shrinking market space. Blue Ocean strategy provides companies with guidelines on how to escape from intense competition over the same market space where there are limited customers with an increasing number of competitors by creating a new market space where there is less competition, if any (Kim & Mauborgne, 2005). Systematic and efficient logistics service has become one of the core support services of ebusinesses, and many innovative strategies utilizing globally expanding Internet technology and e-businesses have been proposed such as new business models with less distribution layers resulting in customer-based logistics, Internet-based logistics, logistics for small-batch production, zero-inventory logistics, and 3rd party logistics (3PL)’ reverse logistics model and GRID services based marketplace model (Bhise et al., 2000; Bruckner & Kiss, 2004; Krumwiede & Sheu, 2002; Lee & Whang, 2001; Lee & Lau, 1999; Simchi-Levi et al., 2004). As a relatively new business model in logistics, 3PL companies provide outsourcing service of transportation, warehousing, freight consolidation, distribution, inventory management, and logistics information systems to companies who used to operate their own logistics network (Kimura, 1998; Rabinovich et al., 1999; Sink & Langley, 1997; Vaidyanathan, 2005). CJ-Global Logistics Service (CJ-GLS) is a late comer in intensively competitive Korean logistics industry. Entered into the 3PL industry from the start, however, it has the largest client bases and ranked fourth in the market due to its strength in market analysis, customer requirement analysis, and constructing logistics information systems (LIS) including successful implementation of radio frequency identification (RFID)-based ubiquitous LIS. This chapter analyzes CJ-GLS’ business model with Blue Ocean strategy to show how a company in the Red Ocean reinforces its competitive advantage to move toward a less competitive new market space by utilizing information technologies. For this case study, we

A RFID Based Ubiquitous-Oriented 3rd Party Logistics System: Towards a Blue Ocean Market