Companies must make tradeoffs in choosing a competitive position from "summary" of Competitive Strategy by Michael E. Porter
The essence of strategy is choosing what not to do. Companies must make tradeoffs in choosing a competitive position. A tradeoff means that more of one thing necessitates less of another. Companies that try to excel at everything end up excelling at nothing. For a company to be successful, it must make clear choices about where it will compete and how it will win. These choices involve selecting a set of activities that are different from those of rivals. By making tradeoffs, a company can focus its resources on activities where it can create a unique and sustainable competitive advantage. Tradeoffs also help define a company's identity and positioning in the marketplace. This clarity enables the company to align its organization and resources around a clear strategic direction. Without tradeoff...
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