Whichever type of strategy is chosen, success will depend on creating an aligned set of strategy propositions targeted at three different sets of stakeholders: buyers, shareholders, and the people working for or with the organization.Diversified companies should be comfortable using both approaches. In choosing which of the two is most appropriate for your organization, you need to consider environmental attractiveness, the capabilities and resources you can call on, and whether your organization has a strategic orientation for competing or for innovating.There are two types of strategy: structuralist strategies that assume that the operating environment is given and reconstructionist strategies that seek to shape the environment.The authors conclude by observing that most large and diversified businesses operating in multiple industries will need to learn to apply both approaches, depending on the strategic needs of their various units. In this article they explain the key differences between the two approaches, identify the circumstances under which each one is appropriate, and discuss cases of blue ocean strategies. For the past 15 years, the authors have been developing this reconstructionist approach into the blue ocean strategy, which reflects the fact that a company’s performance is not necessarily determined by an industry’s competitive environment. In this structuralist approach, structure shapes strategy.īut as Kim and Mauborgne, the authors of Blue Ocean Strategy, point out, history reveals plenty of situations in which firms’ strategies shaped structure-from Ford’s Model T to Nintendo’s Wii. The underlying logic here is that a company’s strategic options are bounded by the environment. They then set out to carve a distinctive strategic position from which they can outperform their rivals by building a competitive advantage. When executives develop corporate strategy, they nearly always begin by analyzing the industry or environmental conditions in which they operate and the strengths and weaknesses of the players they are up against.
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