3. “A company can outperform rivals only if it
can establish a difference that it can
preserve.”
Michael Porter, What is Strategy?
With OE staying ahead of
rivals gets harder and harder
4. “Competitive Strategy is about being different.
It means deliberately choosing a different set
of activities to deliver a unique mix of value.”
Michael Porter, What is Strategy?
6. Strategic positions can be based on:
Customers’ needs
Company’s products or services
Way of Accessing Customers
7. Choosing a unique position, does not guarantee a
sustainable advantage.
Imitation –STRADDLING
Continental Airlines
8. Occurs when activities are in compatible
Continental Airlines
Trade-offs create and limit what company offers.
Honda- Civic, Toyota- Corolla
positive Trade-offs
Neutrogena
9. “Strategy is about combining activities”
Michael Porter, What is Strategy?
Fit locks out imitators by creating a chain as
strong as its strongest link
What is southwest's core competence?
One activities cost is lowered by other
10.
11. The growth trap:
desire to grow blurs strategic position
Maytag Corp: washers and dryers
Neutrogena :mass merchandising ,variety of
products
Profitable growth: distinctive
Editor's Notes
Father of modern strategy field
Strategy positioning means performing diff activities from rivals or performing similar activities in diff ways
It must deliver greater value to customers or create greater value at a lower cost or do both.Over a exteded period of time OE becomes harder and harder ,diffusion of best practices.competitors can quickly imitate manage ment techniques ,input improvements,and superior way of meeting customer needsInneficieny is out sourced, rivals out source to same,immetate one other in quality,cycle times, supplier partnership,strategiescoverege and competition becomew a series of racesdown identical path that no one can win
Exchange that occurs as a compromise
Travel agents
Profitable growth: grow faster and profitable by penetrating needs and necessities where it is distinctive than by slugging it out in potential higher growth arenas in which it lacks uniqness
