Porter's Define And Characteristics Of Operational Effectiveness And Strategy

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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
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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 …show more content…
Furniture stores have been around for years. You have your classic full-service stores like Ethan Allen and Raymore and Flanigan; your discount full service stores like Bob’s Discount Furniture and Value City; and your self-service store Ikea. All are competitor’s in the same industry, all want to provide furniture to consumers. The classic full-service stores have a strategy focused more so on families and established customers who can afford a higher price tag and the “buying experience.” Their operational effectiveness is to be efficient when making deliveries in short time frames by only delivering to certain areas on certain days, limiting time and fuel cost. The discount full service stores have larger showrooms and carry their own brands of furniture, their strategy is to have the aesthetic of the classic store but appeal to more customers at different price ranges. Their operational effectiveness is carrying their own brands, and delivery options which are available but will most likely take longer than the classic stores. Finally, you have Ikea which appeals to all buyers again, but they have fewer showrooms, everything is their own brand and they have items in all price ranges, this is their strategy. Everything is in flat brown boxes, saving an exurbanite amount on shipping costs, but also giving the everyday person the ability to take home their purchases

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