In accordance with the present day scenario, the dynamic markets and the productive technologies primarily emphasizes on the sustainability of the competitive advantage. Implementation of effective strategy thus plays a crucial role in determining the effectiveness of the marketing tools. The strategy is thus defined as a range or way that emphasizes over the long term achievement of a given organization. Focusing more to improve on all other fonts, their focus on improving the viable competitive position gradually decreases. Michael Porter first argued regarding the fact that though operational effectiveness is a necessary tool for highlighting the superior performance but since the methods are not easy to imitate, it is not very much sufficient. This report will thus help in analyzing the contribution of the given article to the mentioned subject area along with the critical appraisal of the article.
According to Porter, the different kind of tools like quality management, benchmarking and other do help in improving the operation of a given firm, but it effectively fails in providing sustainable profit to the company. Thus, the primary cause of the problem is the inability of the management to distinguish between the strategy and the effectiveness of the organization. The article thus contributed to highlighting the different aspects are providing to the subject area. In the contribution to the subject area, the article presently helped in enhancing the idea regarding operational effectiveness, origins of strategic positions, tradeoffs, competitive advantage, the role of leadership and sustainability.
It has been stated by Porter that a company can only outperform the rivals by establishing a difference that it can primarily preserve. Thus, the concept of competition based on operational effectiveness helped in developing an idea regarding the productivity frontier.
Porter helped in understanding regarding the different kinds of positioning based on strategy. This primarily includes variety-based positioning; access based positioning and needs to be based positioning. Thus, it helped in understanding the fact that positioning is not always considered as the function of difference based on the demands of the customers.
This aspect particularly helped in understanding the concept of sustainable advantage by the introduction of suitable tradeoffs with respect to another positioning. As given in the article which states that “A trade-off means the more of one thing necessitates less of another “(p. 68).
This aspect contributed to the understanding of the positioning choices that helped in determining how the companies that need to configure the individual activities and not only the single activities associated with the enterprise. This helps to focus mainly on the effectiveness of an individual identity and strategy concentrating on the combining activities. In accordance with it, the three types of fit that arise include first order fit, second order fit and third order fit. The understanding of the different fit assists in understanding the central component of the competitive advantage.
As quoted in the article “the challenge of developing or reestablishing a clear strategy is often primarily an organizational one and depends on leadership" (p. 77). This primarily helped to focus upon the fact that strategy is not only about choosing the things to do, but it also helps in determining the things that do not need to be done. Thus, the understanding of the strategy helps in deciding not only to serve their customers but also to satisfy their needs. Thus, implementation of a clear strategy requires a clear communication and proper discipline. Hence, the approach guides the employees in making practical choices that arise because of the trade-offs.
Understanding the present concept, helps in providing idea regarding strategic fit helps in providing a sustainable advantage as because it helps in replicating the activity of a particular individual. Thus, the concept of sustainable competitive advantage contributes to providing a unique position for a given firm. It also helps in tailoring activities strategically.
From the above discussion based on the article, it can be concluded that the aspects that have been outlined in the given article critically help in the understanding of the several factors enhancing the different his method of strategy regarding operational needs. Operational effectiveness helps in the understanding of the activities for successful implementation of the strategy while the strategic operations are defining various kind of positioning assists in the understanding of the different positioning. The tradeoffs also help to appraise the positioning of the competitors regarding imitating a valuable positioning in various ways critically. Therefore, the critical appraisal helps in enhancing the knowledge regarding the significance of the article in context to strategy.
Porter, M. (1996) ‘What is Strategy?’, Harvard Business Review, 74 (6) Nov-Dec, pp. 61-78.
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