Summay of articals Essay Example | Topics and Well Written Essays - 500 words

Summay of articals - Essay Example s is necessary, but very few companies have been able to compete on the basis of operational effectiveness due to the ease of rival companies imitating management techniques and the more that rivals begin to look like one another. As a result, there is no competition and prices are static or declining. Competitive strategy is about being different from competing businesses and companies. It requires purposely picking a different set of activities to offer a unique mix of value. The majority of managers claim that their strategies are based on the needs and interests of their customers. Everything becomes based on the customer. Many businesses, such as furniture stores, movie stores, and airlines provide services that are uniquely aligned with the needs of its customers. The fundamental quality of strategy is in the activities, such as opting to execute activities differently or execute different activities compared to those of rivals. Even if a business or company picks a unique position, they are still not guaranteed a sustainable advantage. A valuable position will only attract imitation from rivals; airlines are proof of this. As such, trade-offs are used to make strategic positions more sustainable, which can also prevent companies from becoming imitators. When a trade-off is made, more of one thing necessitates less of another. There are three reasons why a company may decide to execute trade-offs and they are as follows: inconsistencies in image or reputation, activities themselves, and from limits on internal coordination and control. Trade-offs are essential to competition and strategy, and they prompt a need for choice and purposefully limit what a company has to offer. The nature of strategy is to choose what not to do. Operational effectiveness is about reaching excellence in regard to individual activities, but strategy is about combining activities. The greatest aspect of strategy involves considering a whole system of activities and not just a