Objectives For A Sustainable Competitive Advantage Of A Business Without Losing Its

856 Words Sep 27th, 2016 4 Pages
This article highlights the concept of strategy and other crucial factors for a sustainable competitive advantage of a business without losing its (uniqueness) position in the market. Porter (1996) emphasizes that management tools such as benchmarking, outsourcing, partnering, and engineering have drastically taken the place of strategy. Due to the fact that management fails to distinguish between operational effectiveness and strategy, these management tools improve the operational effectiveness of a business without preserving its sustainable profitability. He states that operational effectiveness and strategy function in different ways, but they are both critical for high and superior performance that represent the ultimate goal for any organization (Porter, 1996). “Operational effectiveness means performing similar activities better than rivals perform them… [and it] includes but is not limited to efficiency” (Porter, 1996, p.62). However, strategic positioning refers to performing different activities from rivals’ or performing similar activities in different ways. According to Porter (1996), a company can outperform its competitor only if it can establish a difference that can persevere. To do so, the company “must deliver greater value to customers or create comparable value at a lowest cost or do both” but this requires greater efficiency (Porter, 1996, p.62). Productivity frontier refers to the use of best practices that maximize the company’s value at a given…

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