1. Some competitive activities are incompati- ble; thus, gains in one area can be achieved only at the expense of another area.
2. Operational Effectiveness
3. Managers have been learning to play by a new set of rules. Companies must be flexible to respond rapidly to competitive and market changes.
4. According to the new dog- ma, rivals can quickly copy any market position, and competitive advantage is, at best, temporary.
5. Operational Effectiveness: Necessary but Not Sufficient
6. Operational effectiveness and strategy are both essential to superior performance, which, after all,is the primary goal of any enterprise.
7. Performing similar activities better than rivals perform them.
8. It refers to any number of practices that allow a company to better utilize its inputs by,
9. Performing different activities from rivals’ or performing similar activities in diferent ways.
10. Strategic positioning
11. Strategy Rests on Unique Activities
12. Competitive strategy is about being different.
13. But the essence of strategy is in the activities choosing to perform activities differently or to perform different activities than rivals.
14. First, positioning can be based on producing a subset of an industry’s products or ser- vices.
15. Is based on the choice of product or service varieties rather than customer segments. Called variety-based positioning
16. A Sustainable Strategic Position Requires Trade-offs
17. A valuable position will attract imitation by incumbents, who are likely to copy it in one of two ways.
18. A competitor can reposition itself to match the superior performer.
19. Trade-offs arise for three reasons.
20. The first is consistencies in image or reputation.
21. A company known for delivering one kind of value may lack credibility and confuse customers or even under mine its reputation if it delivers another kind of value or attempts to deliver two inconsistent things at the same time.
22. Second, and more important, trade-offs arise from activities themselves.
23. Different positions require different product configurations, different equipment, differ- ent employee behavior, different skills, and different management systems.
24. trade-offs arise from limits on internal coordination and control.
25. By clearly choosing to compete in one way and not another,senior management makes organizational priorities clear.
26. Principles Strategics positioning
27. Strategy is the creation of a unique and valuable position, involving a different set of activities.
28. Strategy requires you to make trade-offs in competing—to choose what not to do.
29. Strategy involves creating “fit” among a company’s activities.
30. • Serving few needs of many customers • Serving broad needs of few customers • Serving broad needs of many customers in a narrow market
31. Fit has to do with the ways a company’s activities interact and reinforce one another.
32. The essence of strategy is choosing to perform activities differently than rivals do.
33. The Origins of Strategic Positions
34. Strategic positions emerge from three distinct sources, which are not mutually exclusive and often overlap.
35. Second basis for positioning is that of serving most or all the needs of a particular group of customers. called needs-based positioning,
36. comes closer to traditional thinking about targeting a segment of customers.
37. The third basis for positioning is that of segmenting customers who are accessible in different ways.
38. access based positioning.
39. Access can be a function of cus- tomer geography or customer scale – or of anything that requires a different set of activities to reach customers in the best way.
