After reading a business article, Writing a summary and showing your opinion in paper - Essay Example

What is Strategy? The article “What is Strategy” published in the Harvard Business Review reports about the role of strategy in modern business (Porter 1-20). In my opinion, the author is accurate in stating that with the advent of the modern era, the tools and techniques required to compete in business have also undergone major transformations. Operational Effectiveness which means executing alike operations better in contrast to competitors, is essential; however, at the same time, strategy holds importance too.

Strategic Positioning involves carrying out different operations from competitors or accomplishing analogous activities in unique ways. I believe in the fact that competitors are constantly looking to replicate any strategy of their opponent which proves to be thriving in the market. In order to tackle this threat and gain competitive advantage, it is imperative for a company to set apart its product from that of the adversaries through superior efficiency and yield. Productivity Frontier comprises of the total of all current top measures at any particular time and keeps on shifting externally with the arrival of latest technologies along with contemporary management tools.

It is true that competition with respect to Operational Effectiveness moves the frontier outward for everyone, therefore resulting in no comparative improvement among the companies. Moreover, it tends to negate differentiation. The success of strategy lies on the exclusivity of the operations undertaken by the company. For instance, Southwest Airlines Company adopts a unique set of activities such as no meals, low cost, short distance services, etc. Similarly, Ikea, a worldwide furniture trader focuses on self-service system to distinguish its company.

There are mainly three springs of origin of Strategic positions: Variety based, Need based and Activity based. Variety based positioning entails production of particular products and services in different manners similar to Jiffy Lube International which specializes in automotive lubricants. Need based positioning involves serving a particular group of customers like Ikea which usually aims at serving the young adults. Whereas Access based positioning segregates customers available in different ways such as rural and urban, to meet their specific needs with Carmlike Cinemas being a prime example of such a case.

However, in order to maintain strategic positions, the need of tradeoffs becomes crucial as they help avoid Repositioning and Straddling, which are the two means of imitation for a company, thereby promoting choice as well as differentiation. Another significant aspect for achievement in industry is the presence of fit linking Competitive advantage and Sustainability. There are usually three types of fits: Simple consistency, Reinforcing and Optimization of effort. These fits, in general, demand for integration between the operations and the core strategy assumed by the company.

Strategic positions should be planned on the basis of long term, focusing on continuous improvement. However, even as the company grows, managers still need to be vigilant so that the company does not fall into the growth trap. Finally, I would concur with the author’s view that leadership plays a pivotal role in designing a company’s strategy, aligning it with the activities and making tradeoffs wherever necessary (Porter 1-20).Works CitedPorter, Michael E. "What is Strategy?" Harvard Business Review (1996): 1-20. Web. 31 Jan. 2012.