This document discusses the differences between operational effectiveness and strategy. Operational effectiveness means performing similar activities better than rivals, like reducing product defects. Strategy means performing different activities or activities differently to establish a unique position. It also discusses how strategic positioning comes from variety, need, or access-based differences. Finally, it emphasizes that strategy requires trade-offs to make unique choices and be sustainable, and that fit among a company's activities is important for competitive advantage.
Operational Effectiveness Is Not Strategy
Operational Efficiency
Competitive Strategy
Strategy Rests on Unique Activities
Origin of Strategic Position (3 Sources)
Variety /Need /Access-Based Positioning
A Sustainable Strategic Position Requires Trade-offs
Fit Drives Both Competitive Advantage and Sustainability
Rediscovering Strategy
External Challenges to Strategy
Traps for Shaping Strategy
What is a Strategy? Michael Porter - Harvard Business ReviewDonny Sitompul
What is Strategy
Operational Effectiveness Is Not Strategy
Strategy Rests on Unique Activities
A Sustainable Strategic Position Requires Trade-offs
Fit Drives Both Competitive Advantage and Sustainability
Rediscovering Strategy
Operational Effectiveness Is Not Strategy
Operational Efficiency
Competitive Strategy
Strategy Rests on Unique Activities
Origin of Strategic Position (3 Sources)
Variety /Need /Access-Based Positioning
A Sustainable Strategic Position Requires Trade-offs
Fit Drives Both Competitive Advantage and Sustainability
Rediscovering Strategy
External Challenges to Strategy
Traps for Shaping Strategy
What is a Strategy? Michael Porter - Harvard Business ReviewDonny Sitompul
What is Strategy
Operational Effectiveness Is Not Strategy
Strategy Rests on Unique Activities
A Sustainable Strategic Position Requires Trade-offs
Fit Drives Both Competitive Advantage and Sustainability
Rediscovering Strategy
Porter's Generic Strategies with examplesdipalij07
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This presentation is on Strategy formulation(of subject strategic management) and it covers following points :-
Define strategy formulation
Need of strategy formulation
Steps of strategy formulation
Problems in strategy formulation
Levels of strategy
Crafting the Brand Positioning
Developing & Establishing a Brand Positioning
Points-of-difference
Points-of-parity
Brand Mantras
Communicating Category Membership
Consumer Desirability Criteria for PODs
Deliverability Criteria for PODs
Differentiation Strategies
Positioning and Branding a Small Business
Cost Leadership / Low-cost Business Strategy:
A cost leadership strategy is an integrated set of actions designed to produce or deliver goods or services at the lowest cost, relative to that of competitors, with features that are acceptable to customers.
Porter's Generic Strategies with examplesdipalij07
This Presentation is containing brief description of generic strategies with examples of companies in detail....
Hope it will be helpful to everybody....
Enjoy...!! :)
Charting your company's future. A HBR article on marketing and strategy plann...Durgadatta Dash
This is a HBR article Charting your company's future review presentation. The presentation contains all the graphical representations and examples including all the examples with the elaboration of all the concepts.
A focused cost leadership strategy requires competing based on price to target a narrow market.
A firm that follows this strategy does not necessarily charge the lowest prices in the industry. Instead, it charges low prices relative to other firms that compete within the target market.
Strategic formulation in Strategic managementYamini Kahaliya
This presentation is on Strategy formulation(of subject strategic management) and it covers following points :-
Define strategy formulation
Need of strategy formulation
Steps of strategy formulation
Problems in strategy formulation
Levels of strategy
Crafting the Brand Positioning
Developing & Establishing a Brand Positioning
Points-of-difference
Points-of-parity
Brand Mantras
Communicating Category Membership
Consumer Desirability Criteria for PODs
Deliverability Criteria for PODs
Differentiation Strategies
Positioning and Branding a Small Business
Cost Leadership / Low-cost Business Strategy:
A cost leadership strategy is an integrated set of actions designed to produce or deliver goods or services at the lowest cost, relative to that of competitors, with features that are acceptable to customers.
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Strategic Purpose
Business Level Strategy
Corporate Level and International Strategy
Strategy Direction and Methods of Developments
Organizing for Strategy Success
Enabling Strategy Success
Managing Strategic Change
Understanding Strategy Development
Key Learning Points
2. Operational Effectiveness is Not Strategy
The main problem is the failure to distinguish between
operational effectiveness and strategy.
Operational effectiveness- performing similar activities better
than rivals. E.g: reducing defects in products
Strategic positioning- performing different activities from
rivals or performing similar activities in different ways.
A company can outperform rivals only if it can establish a
difference that it can preserve.
Eg: Japanese companies rarely have strategy
3. Strategy Rests on Unique Activities
Competitive strategy is about being different
Essence of strategy is- choosing to perform activities
differently or to perform different activities than rivals.
Eg: Southwest Airlines-
Short haul point to point
Low cost
No food
Turnaround time
Small Airports
No agent commission
4. Strategic position emerge from 3 sources
Variety-based positioning- producing a subset of an
industry’s products or services. Eg: Jiffy Lube
International specializes in automotive lubricants only
Need- based positioning- serving most or all the needs of a
particular group of customers.
Eg: Ikea furniture meets all the home furnishing needs of its
target customers
Access- based positioning- Segmenting customers who are
accessible in different ways. Access can be customer
geography or customer scale.
Eg: Amazon.com, accessing customers exclusively through
internet
5. A sustainable strategic position requires trade-offs
A strategic position is not sustainable unless there are trade-offs
with other positions.
Trade-offs occur when activities are incompatible.
Trade-offs create the need for choice and protect against
repositioners and straddlers.
6. Trade-offs arise for three reasons:
1. Inconsistencies in image or reputation
2. Trade-offs arise from activities themselves
3. Trade-offs arise from limits on internal coordination and
control
Tradeoffs are essential to strategy. They create the need for
choice and purposefully limit what a company offers.
7. Trade-offs add a new dimension to the definition of strategy
Strategy is making trade-offs in competing.
The essence of strategy is choosing what not to do.
Without trade-offs, there would be no need for choice and thus
no need for strategy
8. Fit drives both competitive advantage and
sustainability
The importance of fit among functional policies is one of the
oldest ideas in strategy.
Fit is important because discrete activities often affect one
another.
Three types of fit
1. First-order fit is simple consistency between each activity
(function)
2. Second-order fit occurs when activities are reinforcing
3. Third- order fit occurs when optimization of effort (reducing
redundancy & waste)
9. Competitive advantage grows out of the entire system of
activities.
The fit among activities substantially reduces cost or
increases differentiation
Strategy is creating fit among a company’s activities.
The success of strategy depends on doing many things well-
not just a few and integrating among them.
10. Rediscovering to a successful strategy, not Profit is the key to
Profit is the key strategy
a successful strategy, not growth.
Compromises and inconsistencies in the pursuit of growth will
erode the competitive advantage a company.
Keep an eye on profitable growth.
The role of top management in an organization is:
Defining an organization’s position and strategy
Making trade-offs
Forging fit among activities
Building an innovation machine
And strategy may have to change along with major structural
changes in an industry -- flexibility is vitally important.