Financial Essay

11899 Words Jul 25th, 2015 48 Pages
What is Strategy?

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by Michael E. Porter

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Reprint 96608

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Harvard Business Review

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HarvardBusinessReview
MICHAEL E. PORTER

NOVEMBER-DECEMBER 1996
Reprint Number
96608

THE HOLLOW RING OF THE PRODUCTIVITY REVIVAL

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THE POWER OF TRUST IN
MANUFACTURER-RETAILER RELATIONSHIPS

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JAMES WALDROOP AND TIMOTHY BUTLER

THE EXECUTIVE AS COACH

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AMAR BHIDE

THE QUESTIONS EVERY ENTREPRENEUR MUST ANSWER

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STEPHEN S. ROACH
NIRMALYA KUMAR

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WHAT IS STRATEGY?

WHAT HOLDS THE MODERN COMPANY TOGETHER?

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MICHAEL C. BEERS

HBR CASE STUDY
THE STRATEGY THAT WOULDN’T TRAVEL

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THINKING ABOUT…
THE HUMAN SIDE OF MANAGEMENT

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SOCIAL
…show more content…
They must outsource aggressively to gain efficiencies. And they must nurture a few core competencies in the by Michael race to stay ahead of rivals.
Positioning – once the heart of strategy – is rejected as too static for today’s dynamic markets and changing technologies. According to the new dogma, rivals can quickly copy any market position, and competitive advantage is, at best, temporary.
But those beliefs are dangerous half-truths, and they are leading more and more companies down the path of mutually destructive competition.
True, some barriers to competition are falling as regulation eases and markets become global. True, companies have properly invested energy in becoming leaner and more nimble. In many industries, however, what some call hypercompetition is a self-inflicted wound, not the inevitable outcome of a changing paradigm of competition.
The root of the problem is the failure to distinguish between operational effectiveness and stratHARVARD BUSINESS REVIEW

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What Is Strategy?

Operational Effectiveness:
Necessary but Not Sufficient

Operational effectiveness and strategy are both essential to superior performance, which, after all, is the primary goal of any enterprise. But they work in very different ways.
Michael E. Porter is the C. Roland Christensen Professor of Business Administration at the Harvard Business
School in Boston, Massachusetts.

November-December 1996 Copyright © 1996 by the

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