review the article What is strategy by Michael .E. Porter

Michael Eugene Porter is a Professor at The Institute for Strategy and Competitiveness, based at the Harvard Business School. He is generally recognized as the father of the modern strategy field. One of his great writing is â€Å"What is strategy?† published in 1996. The beginning of the article raises a mistake of Operational Effectiveness for Strategy that many companies had suffered for almost two decades. In the article, Operational Effectiveness means performing similar activities better than rivals perform them. To achieve this objective, companies based on its strength using their best available technologies, skill, management, human resource, eliminated wasted effort, motivated employees†¦ As the result of this, they could offer†¦show more content†¦A university lab room is just used for teaching or checking models in simple cases. It can not be used to do business in complex case like the lab room in industry. Finally; it comes from limit on internal coordination and control. Continental lost a lot of money when imitating Southwest to add a new service for point-to-point flight. However, in practice, trade-off is not easy. It’s not sure to choose what to remain and what to give up. In psychology, managers always want to make their company grow. When seeing the competitors who are successful and get a lot of profit, it’s hard to ignore without jump into that business. Therefore, trade-off requires thoughtful decision and sensitive impression. Furthermore, Porter argues that to gain competitive and sustainability every thing has to be â€Å"Fit†. That is the way activities relate to another. They are combined to fit and reinforce another. Activities can be performed separately but the give effect on each other. Since competitors are facing an entire ecosystem, with elements that allow and strengthen each other existence, they need to be very persistent, capitalize, or creative to be able to replicate or break the company’s strategy. To break a single chopstick is easy but it’s impossible to do the same with a bundle. Samsung’s success is achieved by a combination many aspects. Their products are well designed by excellent designers who are often visit world’s wonders, museum, and learnShow MoreRelatedHow Competitive Forces Shape Strategy856 Words   |  4 PagesMichael E. Porter, associate professor published the article titled â€Å"How Competitive Forces shape Strategy† in Harva rd Business Review in 1979. This article is retitled as â€Å"The Five Competitive Forces That Shape Strategy† and published in Harvard Business Review in 2008. Michael E. Porter developed the model of Five Competitive Forces which is defined as â€Å"Competitive Strategy – Techniques for Analyzing Industries and Competitors†. It has become a main device for analyzing an organizations structureRead MoreHilti cut or Fasten?1339 Words   |  6 Pagesï » ¿Contents Table of Contents Hilti: Cut Costs or Hold Fast? 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Moreover, the goal of a successful business strategy is a sustainable competitive advantage. The question is how does a firm create that competitive advantage? According to Michael Porter, to achieve a competitive advantage, a firm must perform one or more value creating activities in a way that creates more overall valueRead MoreValue Chain and Competitive Forces Essay1247 Words   |  5 Pagesthe cost of the activities in the value chain† (NetMBA.com). Ideally, these products and/or services outpace the competition. In order to do so, Michael Port, suggest a company must sustain long-term profitability (Porter, 2008). He suggests one must look beyond your direct competitors; as explained in his revolutionary 1979 HBR article and further defined in 2008. There, he identifies â€Å"the five forces that shape industry competition†, for businesses to utilize in shaping a strategic vision