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Paper Topic:

Michael Porter

Porter 's Operational Effectiveness and Strategy

What does Porter mean by operational effectiveness

For Michael Porter , operational effectiveness means performing similar activities better than rivals perform them . Porter says operational effectiveness includes but is not limited to efficiency . Operational effectiveness then refers to any number of practices that allow a company to better utilize its inputs by , for reducing defects in products or by developing better products faster

Why is operational effectiveness not a strategy

Operational effectiveness is not a strategy because OE is doing similar business better than others

, while strategy is simply making a difference . Operational effectiveness is more than just a competitive way of doing business it means outperforming rivals in terms of the quality of services and products . In this sense , operational effectiveness cannot be a strategy because , Strategy is nothing more than a marketing slogan that will not withstand with competition (Porter ,

. 43 . It is simply deliberately choosing a different set of activities to deliver a unique set of value . However , Porter emphasized that both operational effectiveness are essential to superior performance (p . 49

Does identifying and focusing on core competencies and unique advantages suggest that only focus strategies (in the generic sense ) are truly sustainable

I should say yes in the context of competencies . If focus strategies means something like what the Southwest airline has been doing (the airline initiated activities that are different from others to attract passengers , then , only focus strategy is truly sustainable . It means strategies that provides advantages and...

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