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For the past 15 years, we have been developing a theory of strategy, known as blue ocean strategy, that reflects the fact that a company’s performance is not necessarily determined by an industry’s competitive environment.2 The blue ocean strategy framework can help companies systematically reconstruct their industries and reverse the structure-strategy sequence in their favor. Blue ocean strategy has its roots in the emerging school of economics called endogenous growth3, whose central paradigm posits that the ideas and actions of individual players can shape the economic and industrial landscape. In other words, strategy can shape structure. We call this approach “reconstructionist.
