Structuralists vs Reconstructionists
Critical discussion of “How Strategy shapes Structure” of Kim C.W and Mauborgne M.
Apart from the conventional way of thinking, planning and acting in the context of forming structuralist strategies, the authors have portrayed a comparative analysis between the latter and reconstructionist strategies which actually shift from either low cost or differentiation dilemma to both cost and differentiation management.
In turbulent times, strategy overall should be adaptive and flexible or - as frequently characterized in operations management and logistics language – WIP (work in progress), therefore no single strategy approach is a lifelong solution. Competition does not concern firms per se but supply chains since suppliers and customers do not maintain a sole, linear relationship with the company of interest. Supply chains worldwide are choosing to adopt structuralist strategies which are not necessarily risk-averse, however they tend to be mostly reactive and benchmarking-based aiming to confirm the theory of institutional isomorphism (Zhu et al, 2007).
In order to assess blue oceans, it would be interesting to monitor red oceans which are actually the prerequisite for supply chains nowadays to think moving towards blue oceans. Despite Porter’s statement in the late 90s concerning markets’ tendency to overlook the significance of small and niche markets (Srinivasan, 2009), at present there is the evident existence of perfect competition, excess supply and moderate demand therefore niche markets are likely to be smoothed away (Kim et al, 2005). Innovative business models such as supply chains based on network marketing, MLM and direct sales practices such as LR, NWA and AVON or green supply chains such as Dell, IBM, Toyota, Hewlett Packard and Tesco have found themselves being successful due to the affiliation of value, profit and people proposition even if some of them were not reconstructionists from the very beginning.
Besides corporations and US based supply
Apart from the conventional way of thinking, planning and acting in the context of forming structuralist strategies, the authors have portrayed a comparative analysis between the latter and reconstructionist strategies which actually shift from either low cost or differentiation dilemma to both cost and differentiation management.
In turbulent times, strategy overall should be adaptive and flexible or - as frequently characterized in operations management and logistics language – WIP (work in progress), therefore no single strategy approach is a lifelong solution. Competition does not concern firms per se but supply chains since suppliers and customers do not maintain a sole, linear relationship with the company of interest. Supply chains worldwide are choosing to adopt structuralist strategies which are not necessarily risk-averse, however they tend to be mostly reactive and benchmarking-based aiming to confirm the theory of institutional isomorphism (Zhu et al, 2007).
In order to assess blue oceans, it would be interesting to monitor red oceans which are actually the prerequisite for supply chains nowadays to think moving towards blue oceans. Despite Porter’s statement in the late 90s concerning markets’ tendency to overlook the significance of small and niche markets (Srinivasan, 2009), at present there is the evident existence of perfect competition, excess supply and moderate demand therefore niche markets are likely to be smoothed away (Kim et al, 2005). Innovative business models such as supply chains based on network marketing, MLM and direct sales practices such as LR, NWA and AVON or green supply chains such as Dell, IBM, Toyota, Hewlett Packard and Tesco have found themselves being successful due to the affiliation of value, profit and people proposition even if some of them were not reconstructionists from the very beginning.
Besides corporations and US based supply
References: Kim, W. C. and Mauborgne, R. (2005) Blue Ocean Strategy: From theory to Practice California Management Review, 47(3), p105-21 Srinivasan, M and Vilakshan, S. (2009) Rethinking Corporate Strategy – A Consiousness Perspective The XIMB Journal of Management, 6(1), p119-30 Zhu, Q. and Sarkis J. (2007) The moderating effects of institutional pressures on emergent green supply chain practices and performance International Journal of Production Research, 45(18), p.4333-35