The theory of creative destruction is significant     in explaining the long term endogenous   economic growth phenomenon....
Creative destruction offers a partial explanation of endogenouseconomic growth and changing industrial compositionReconstr...
For example, Cirque du Soleil created uncontested new marketspace by appealing to a whole new group of customers By ignori...
Nintendo eliminated movie playing, reduced graphics and physicsand raised the fun of playing video games Nintendo realized...
Buyer value elements can be reordered across established marketand industry boundaries such that a new level of demand isg...
Zunaira Munir As the founder and Managing Director ofinternational Blue Ocean Strategy consulting firm Strategize Blue(San...
University of Technology in China, over six years of universityteaching experience at the undergraduate and graduate level...
Munir creates a lasting impact on organizations eager to innovateand grow An active Senior Global Blue Ocean Strategy Netw...
blue ocean strategy
Upcoming SlideShare
Loading in...5
×

The-Theory-Of-Creative-Destruction-Is-Significant-97

224

Published on

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
224
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
1
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

The-Theory-Of-Creative-Destruction-Is-Significant-97

  1. 1. The theory of creative destruction is significant in explaining the long term endogenous economic growth phenomenon. However, itfalls short of painting the complete picture. The theory of reconstruction provides a compellingexplanation for endogenously created economic growth that remains unexplained by creative destruction. The two theories, taken together, provide a more comprehensive understanding of determinants of long term economic growth.blue ocean strategy
  2. 2. Creative destruction offers a partial explanation of endogenouseconomic growth and changing industrial compositionReconstruction however, driven by creativity as a learnable skill, is abroader concept that can be identified in three subsidiaries, offeringexplanation for the creative destructions shortcomings to thecreation of the numerous new industries that resulted in thereconstruction of boundaries between existing well-defined industriesand the economic growth generated through reconstruction ofboundaries within existing industries that generate new demand inthe market and creates new market spaces within industries First,Schumpeters creative destruction defined as an evolutionaryprocess in which companies follow the pattern of destruction andrebirth, new structures completely destroy a previous market orindustry Ideas, skills, technologies, etc blue ocean strategy becomeobsolete as innovations to an industry develop in the interest toimprove productivity or the standard of living A classic example isthe death of the type writer due to the development of themicroprocessor Second is the creation of an entirely new industry inwhich blue oceans of uncontested market space are created due tothe reconstruction of boundaries between existing well-definedindustries
  3. 3. For example, Cirque du Soleil created uncontested new marketspace by appealing to a whole new group of customers By ignoringthe existing boundaries of the already shrinking circus industry andtheater Cirque du Soleil successfully reinvented the circus appealingto a whole new group of consumers Third is the expansion of acurrent market space or industrys economic growth generatedthrough the reconstruction of boundaries within existing industriesthat generate new demand in the market and creates new marketspaces within industries Take Nintendo Wii for example; Everyaspect of the Nintendo Wii is Fun Nintendo Wii has been able tooutsell Microsofts Xbox 360 and Sonys PS3 As the video gamingindustry has become increasingly more competitive Nintendodecided not to compete in the bloody red ocean of competitionInstead Nintendo applied Blue Ocean Strategys six-path element ofFunctional/Emotional to create high profitable growth
  4. 4. Nintendo eliminated movie playing, reduced graphics and physicsand raised the fun of playing video games Nintendo realized thathigh-resolution movies on a game machine are TechnologicalInnovation: innovation solely for the sake of innovating Fun, anemotion element, was placed over chips, a functional elementWhereas its competitors, Microsoft and Sony concentrated entirelyon functional elements: great graphics processors, physics engines,specialized chips, etc Nintendo didnt compete in the Red Ocean:they created a Blue Ocean that rendered the competition irrelevantAs stated previously in this article Creative destruction completelywipes off previous market/industry In contrast, reconstructionsuggests new industries new wealth and new markets can begenerated endogenously through companies conscience efforts ofreconstruction of demand side value elements
  5. 5. Buyer value elements can be reordered across established marketand industry boundaries such that a new level of demand isgenerated spurring income growth and creating wealth The centraldriver behind Blue Ocean Strategys reconstruction is creativitywhich is a learnable skill Knowledge and ideas are systematicallydeployed in the process of creation to identify and minimize risks ascompanies attempt to maximize new market creation opportunitiesBrendan Murphy is the Marketing Manager for Strategize Blue , aBlue Ocean Strategy Training and Consulting company based in SanDiego He works under Dr Zunaira Munir, the internationallyacclaimed expert and Strategize Blue is powered by internationallyacclaimed Blue Ocean Strategy, Innovation Management andLeadership Expert Dr
  6. 6. Zunaira Munir As the founder and Managing Director ofinternational Blue Ocean Strategy consulting firm Strategize Blue(San Diego, CA) she has helped industry giants Intel, HewlettPackard, T-Mobile, Honeywell, AUTODESK, Virbac, RJ Reynolds,DataPath and many more to create wealth and sustainable growth Adistinguished business executive she helped lead herfamily-business Clary Business Machines to one of the fastestgrowing privately held companies in the US in 2008 and 2009 Asought-after speaker, trainer, and business consultant shechallenges companies to look beyond just surviving Difficult toignore the global impact of Blue Ocean Strategy on the business andstrategy world she vehemently continues to inspire businesses toapply Blue Ocean Strategy She asserts fighting with rivals overcompetition and innovation without value is simply not enoughEarning her doctorate in Innovation Management from Wuhan
  7. 7. University of Technology in China, over six years of universityteaching experience at the undergraduate and graduate levels andglobal business credentials, Dr
  8. 8. Munir creates a lasting impact on organizations eager to innovateand grow An active Senior Global Blue Ocean Strategy NetworkMember she works directly under international best-selling BlueOcean Strategy authors W Chan Kim and Renee Mauborgne oncutting-edge research, projects and initiatives worldwide Herupcoming book "Key Concepts in Innovation" published by PalgraveMcMillan transforms the complexities of innovation into clearterminology for both students and practitioners in the field DrMunirs widely published articles have been featured in ChinaBusiness Review, International Review of Business and Research,the PDMA Research Forum and many others For More Information:Mail: 10360 Sorrento Valley Road, Suite C, San Diego CA 92121Email: Phone: +1(858)-324-1997 Fax: +1(858)-552-8609
  9. 9. blue ocean strategy

×