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Blue Ocean Strategy, Expanded Edition: How to Create Uncontested Market Space and Make the Competition Irrelevant by Renee Mauborgne, W. Chan Kim

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APPENDIX Bimage

Value Innovation

A Reconstructionist View of Strategy

THERE ARE BASICALLY TWO DISTINCT VIEWS on how industry structure is related to strategic actions of industrial players.

The structuralist view of strategy has its roots in industrial organization (IO) economics.1 The model of industrial organization analysis proposes a structure-conduct-performance paradigm, which suggests a causal flow from market structure to conduct and performance. Market structure, given by supply and demand conditions, shapes sellers’ and buyers’ conduct, which, in turn, determines end performance.2 Systemwide changes are induced by factors that are external ...

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