Introduction To Michael Porters Article ' What Is Strategy

1214 Words5 Pages
After reading Michael Porters article "What is strategy" I think it’s very interesting. From the article I think operational effectiveness is not a strategy. Many organization tools like total quality management, benchmarking, time-based competition, outsourcing, partnering, reengineering, that are used today, do enhance and dramatically improve the operational effectiveness of a company but fail to provide the company with sustainable profitability. Thus, the root cause of the problem seems to be failure of management to distinguish between operational effectiveness and strategy. Although both operational effectiveness and strategy are necessary for the superior performance of an organization, they operate in different ways. A company can outperform rivals only if it can establish a difference it can preserve. It must deliver greater value to customers or create comparable value at a lower cost, or do both. However, Porter argues that most companies today compete on the basis of operational effectiveness. I believe the productivity frontier is the sum of all existing best practices at any given time or the maximum value that a company can create at a given cost, using the best available skills, expertise, management techniques, and purchased inputs. The frontier is constantly shifting outward as new technologies and management approaches are developed and as new inputs become available. To keep up with the continuous shifts in the productivity frontier, managers have

More about Introduction To Michael Porters Article ' What Is Strategy

Get Access