How Does Porter Define And Characterize Operational Effectiveness

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2. Operational Effectiveness and Strategy:
a. How does Porter define and characterize operational effectiveness?
When defining operational effectiveness Porter explains that it is doing the same or similar activities or actions better than your competitor. As a company you want to complete tasks in the smartest way possible, saving money and increasing profit. This usually leads to decreasing manufacturing time or service turn around time. Operational effectiveness is essentially finding better ways to do the same exact thing your competition is doing. Internet and technological advances are the most common and easiest ways to become more operationally effective, the downside of this is that operational effectiveness is easily imitated which does not provide your company with a big lead in competitive advantage. These advances are also only beneficial if they are sustainable above your competition for long periods of time. Operational effectiveness wants to find similar ways of doing the same tasks for less cost and at a higher production rate.
Increasing operational effectiveness can be
…show more content…
After reading the remainder of the article Porter made it clear as to what he meant, they are relative to another not reliant. While they are both similar they are also vastly different. Strategy is the ability to find different and unique ways of completing actions within an industry to set yourself apart from the rest, make a name for yourself. Operational effectiveness is doing the same set of activities as your competitor but doing them better, this is usually achieved through technology, management initiatives and imitation. You use strategy to be competitive and stay competitive this is innovative, you use operational effectiveness to be efficient and is more so

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