Operational effectiveness is not the same as strategy from "summary" of Competitive Strategy by Michael E. Porter
Many managers often confuse operational effectiveness with strategy. They believe that by improving operational processes and efficiency, they are developing a competitive strategy. However, this is a fundamental mistake that can lead to a company's downfall. Operational effectiveness means performing similar activities better than rivals. It includes practices such as quality management, benchmarking, outsourcing, and process reengineering. These are essential for a company to be competitive in the short term. However, they are not enough to sustain a competitive advantage in the long run. On the other hand, strategy is about being different. It involves making choices about how to position the company in the market and how to create unique value for customers. Str...
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