The most Challenging Concepts/Terms from Chapter 1 and Chapter 2:
Having reviewed chapter 1, the most challenging term related to “blue ocean” that I
found is “Value Innovation”, referring to an approach by which organizations can create
uncontested market space through pursuing differentiation and low cost simultaneously (Kim &
Mauborgne, 2005). In other words, it focuses on pursuing differentiation and low cost to create
the competition irrelevant. On the contrary, the conventional strategy, known as “red ocean” in
which competitors try to outperform within existing industry boundaries. Therefore, value
innovation emphasizes the creation of unmatched market space by balancing two factors: buyer’s
value and cost.
In terms of chapter 2, the most challenging concept is the "Reconstructionist View of
Strategy", referring to a development of a strategy by industry players to rebuild the industrial
and economic environment in which an organization works (Kim & Mauborgne, 2005). It
certainly requires a shift in actions and beliefs to redefine industry norms, going beyond
traditional business strategies.
The Reasons for these Concepts/Terms to be challenging
As for value innovation, it highlights the importance of modifying traditional business
thinking.