Enviar búsqueda
Cargar
M ichael porter strategy is not operational effectiveness
•
15 recomendaciones
•
17,115 vistas
Michaelcmcdermott
Seguir
Strategy is Not Operational Effectiveness
Leer menos
Leer más
Educación
Empresariales
Salud y medicina
Denunciar
Compartir
Denunciar
Compartir
1 de 35
Descargar ahora
Descargar para leer sin conexión
Recomendados
Presentation on what is strategy
Presentation on what is strategy
nisbat anwar
What is strategy ? by M. Porter
What is strategy ? by M. Porter
Faizan Anjum
Porter's Generic Strategies
Porter's Generic Strategies
Ryan Braganza
Michael porter perspective on strategy
Michael porter perspective on strategy
Michaelcmcdermott
Dynamic Capabilities and Strategic Management
Dynamic Capabilities and Strategic Management
National Taiwan University Graduate Institute of Business Administration
What is strategy-Michael E. Porter
What is strategy-Michael E. Porter
Ashmita Karki Chhetri
Porter’s generic strategy
Porter’s generic strategy
Shamala Bhat
Case analysis boeing 787
Case analysis boeing 787
Ashish Michael
Recomendados
Presentation on what is strategy
Presentation on what is strategy
nisbat anwar
What is strategy ? by M. Porter
What is strategy ? by M. Porter
Faizan Anjum
Porter's Generic Strategies
Porter's Generic Strategies
Ryan Braganza
Michael porter perspective on strategy
Michael porter perspective on strategy
Michaelcmcdermott
Dynamic Capabilities and Strategic Management
Dynamic Capabilities and Strategic Management
National Taiwan University Graduate Institute of Business Administration
What is strategy-Michael E. Porter
What is strategy-Michael E. Porter
Ashmita Karki Chhetri
Porter’s generic strategy
Porter’s generic strategy
Shamala Bhat
Case analysis boeing 787
Case analysis boeing 787
Ashish Michael
Creating competitive advantage
Creating competitive advantage
Shanskrite Eshita
Different levels of strategy
Different levels of strategy
BIRLA VISVAKARMA MAHAVIDHIYALAYA
Mintzberg's 5P's of Strategy
Mintzberg's 5P's of Strategy
Sheetal Wagh
porter Five force analysis
porter Five force analysis
Manish Chaurasia
Harward business review- What is strategy ?
Harward business review- What is strategy ?
Devang Gargieya
Strategic group mapping
Strategic group mapping
sanjna walia
01 Globalization and International Business
01 Globalization and International Business
Brent Weeks
Building your company's vision
Building your company's vision
Ahmed Rami Elsherif, PMP, ITBMC
Porter's Generic Strategies with examples
Porter's Generic Strategies with examples
dipalij07
Porters generic strategies
Porters generic strategies
Emma Olohan, PRII
Tools for blue ocean strategy
Tools for blue ocean strategy
Lee Oi Wah
Analysis of Vision and Mission Statements of Companies
Analysis of Vision and Mission Statements of Companies
Hiba shaikh & Varda shaikh
Chapter 5 trade offs the linchpin
Chapter 5 trade offs the linchpin
NIDA Business School
Strategy is not operational effectiveness
Strategy is not operational effectiveness
Michaelcmcdermott
Prsentation on space matrix
Prsentation on space matrix
neha neharika sharma
Managerial process of crafting strategy
Managerial process of crafting strategy
MD SALMAN ANJUM
Strategy
Strategy
Dr. Amit Kapoor
Strategic Positioning PowerPoint Presentation Slides
Strategic Positioning PowerPoint Presentation Slides
SlideTeam
Coca Cola Product Line and Product Mix
Coca Cola Product Line and Product Mix
Januarika Rika
How strategy shapes structure
How strategy shapes structure
Iurii Znak
Mobility Strategy - IBM
Mobility Strategy - IBM
Chris Sparshott
Importance Of Aligning Human Resources With Strategy
Importance Of Aligning Human Resources With Strategy
NISHA SHAH
Más contenido relacionado
La actualidad más candente
Creating competitive advantage
Creating competitive advantage
Shanskrite Eshita
Different levels of strategy
Different levels of strategy
BIRLA VISVAKARMA MAHAVIDHIYALAYA
Mintzberg's 5P's of Strategy
Mintzberg's 5P's of Strategy
Sheetal Wagh
porter Five force analysis
porter Five force analysis
Manish Chaurasia
Harward business review- What is strategy ?
Harward business review- What is strategy ?
Devang Gargieya
Strategic group mapping
Strategic group mapping
sanjna walia
01 Globalization and International Business
01 Globalization and International Business
Brent Weeks
Building your company's vision
Building your company's vision
Ahmed Rami Elsherif, PMP, ITBMC
Porter's Generic Strategies with examples
Porter's Generic Strategies with examples
dipalij07
Porters generic strategies
Porters generic strategies
Emma Olohan, PRII
Tools for blue ocean strategy
Tools for blue ocean strategy
Lee Oi Wah
Analysis of Vision and Mission Statements of Companies
Analysis of Vision and Mission Statements of Companies
Hiba shaikh & Varda shaikh
Chapter 5 trade offs the linchpin
Chapter 5 trade offs the linchpin
NIDA Business School
Strategy is not operational effectiveness
Strategy is not operational effectiveness
Michaelcmcdermott
Prsentation on space matrix
Prsentation on space matrix
neha neharika sharma
Managerial process of crafting strategy
Managerial process of crafting strategy
MD SALMAN ANJUM
Strategy
Strategy
Dr. Amit Kapoor
Strategic Positioning PowerPoint Presentation Slides
Strategic Positioning PowerPoint Presentation Slides
SlideTeam
Coca Cola Product Line and Product Mix
Coca Cola Product Line and Product Mix
Januarika Rika
How strategy shapes structure
How strategy shapes structure
Iurii Znak
La actualidad más candente
(20)
Creating competitive advantage
Creating competitive advantage
Different levels of strategy
Different levels of strategy
Mintzberg's 5P's of Strategy
Mintzberg's 5P's of Strategy
porter Five force analysis
porter Five force analysis
Harward business review- What is strategy ?
Harward business review- What is strategy ?
Strategic group mapping
Strategic group mapping
01 Globalization and International Business
01 Globalization and International Business
Building your company's vision
Building your company's vision
Porter's Generic Strategies with examples
Porter's Generic Strategies with examples
Porters generic strategies
Porters generic strategies
Tools for blue ocean strategy
Tools for blue ocean strategy
Analysis of Vision and Mission Statements of Companies
Analysis of Vision and Mission Statements of Companies
Chapter 5 trade offs the linchpin
Chapter 5 trade offs the linchpin
Strategy is not operational effectiveness
Strategy is not operational effectiveness
Prsentation on space matrix
Prsentation on space matrix
Managerial process of crafting strategy
Managerial process of crafting strategy
Strategy
Strategy
Strategic Positioning PowerPoint Presentation Slides
Strategic Positioning PowerPoint Presentation Slides
Coca Cola Product Line and Product Mix
Coca Cola Product Line and Product Mix
How strategy shapes structure
How strategy shapes structure
Destacado
Mobility Strategy - IBM
Mobility Strategy - IBM
Chris Sparshott
Importance Of Aligning Human Resources With Strategy
Importance Of Aligning Human Resources With Strategy
NISHA SHAH
Anheuser-Busch and Harbin Case Study - Part 2 Drawing a strategy
Anheuser-Busch and Harbin Case Study - Part 2 Drawing a strategy
Romain Corraze
Siemens Corporate Strategy and Proposed Acquisition
Siemens Corporate Strategy and Proposed Acquisition
Francesco Colombo
Maximize Your M-Commerce Strategy
Maximize Your M-Commerce Strategy
Compuware APM
2017 Strategy & Outlook Presentation
2017 Strategy & Outlook Presentation
Total
Luxury Yacht Market Entry Strategy M&M
Luxury Yacht Market Entry Strategy M&M
Yash Saxena
Siemens Hr Strategy
Siemens Hr Strategy
jttaylo
What is a Strategy? Michael Porter - Harvard Business Review
What is a Strategy? Michael Porter - Harvard Business Review
Donny Sitompul
Example of HRM Strategy - IKEA
Example of HRM Strategy - IKEA
Mirna Babović
Aligning HR to Business Strategy
Aligning HR to Business Strategy
The Virtual HR Director, LLC
Marketing strategy of an Apple iphone ...!!
Marketing strategy of an Apple iphone ...!!
Yash A
Adidas HR strategy
Adidas HR strategy
Mikhail Parfentev
Google Strategy & Business Model
Google Strategy & Business Model
Evgenii Gvozdev
Snapchat Visual Marketing Strategy
Snapchat Visual Marketing Strategy
Katai Robert
Your Complete Snapchat Playbook
Your Complete Snapchat Playbook
Todd Brison
Destacado
(16)
Mobility Strategy - IBM
Mobility Strategy - IBM
Importance Of Aligning Human Resources With Strategy
Importance Of Aligning Human Resources With Strategy
Anheuser-Busch and Harbin Case Study - Part 2 Drawing a strategy
Anheuser-Busch and Harbin Case Study - Part 2 Drawing a strategy
Siemens Corporate Strategy and Proposed Acquisition
Siemens Corporate Strategy and Proposed Acquisition
Maximize Your M-Commerce Strategy
Maximize Your M-Commerce Strategy
2017 Strategy & Outlook Presentation
2017 Strategy & Outlook Presentation
Luxury Yacht Market Entry Strategy M&M
Luxury Yacht Market Entry Strategy M&M
Siemens Hr Strategy
Siemens Hr Strategy
What is a Strategy? Michael Porter - Harvard Business Review
What is a Strategy? Michael Porter - Harvard Business Review
Example of HRM Strategy - IKEA
Example of HRM Strategy - IKEA
Aligning HR to Business Strategy
Aligning HR to Business Strategy
Marketing strategy of an Apple iphone ...!!
Marketing strategy of an Apple iphone ...!!
Adidas HR strategy
Adidas HR strategy
Google Strategy & Business Model
Google Strategy & Business Model
Snapchat Visual Marketing Strategy
Snapchat Visual Marketing Strategy
Your Complete Snapchat Playbook
Your Complete Snapchat Playbook
Similar a M ichael porter strategy is not operational effectiveness
Basic Concept of Strategy & Strategic Management
Basic Concept of Strategy & Strategic Management
Djadja Sardjana
On competition chapter 2 what is strategy
On competition chapter 2 what is strategy
NIDA Business School
What Is Strategy Smp
What Is Strategy Smp
Rabbab Azhar
CH 7 Pearce Robinson McGrawHill
CH 7 Pearce Robinson McGrawHill
Tanisha Jain
Chapter 13.pdf
Chapter 13.pdf
arrywidodo
Define a Powerful Go-to-Market Strategy That Sets Your Product Apart
Define a Powerful Go-to-Market Strategy That Sets Your Product Apart
CompellingPM
Chapter 7 continuity the enabler
Chapter 7 continuity the enabler
NIDA Business School
Chap 2 Productivity
Chap 2 Productivity
Adeen Syed
Chapter 1 the fundamentals of managerial economics
Chapter 1 the fundamentals of managerial economics
skceducation
Chapter_05_Business Level Strategy_2023.pdf
Chapter_05_Business Level Strategy_2023.pdf
ShetuBiswas3
Presentation 1
Presentation 1
Nikolaos Gavrias
Bisnal meeting 9 international competitive strategy
Bisnal meeting 9 international competitive strategy
Haryono -
Chp 1_Strategic Management _6e.pptx
Chp 1_Strategic Management _6e.pptx
hoorjardosh
Chapter 1
Chapter 1
Firdaus Fitri Zainal Abidin
ALIGNING STRATEGY AND PROJECT MANAGEMENT.pdf
ALIGNING STRATEGY AND PROJECT MANAGEMENT.pdf
Jo Balucanag - Bitonio
competetive advantage.pdf
competetive advantage.pdf
Yashwanth Rm
OE -2013.ppt
OE -2013.ppt
SaritaJoshi5
What is Strategy? An Introduction to Strategic Positioning and Fit
What is Strategy? An Introduction to Strategic Positioning and Fit
Tim R. Holcomb, Ph.D.
Entrpreneurship -entrpreneurial strategies
Entrpreneurship -entrpreneurial strategies
ACCA Global
Marketing Management Series 06
Marketing Management Series 06
Jared Offei
Similar a M ichael porter strategy is not operational effectiveness
(20)
Basic Concept of Strategy & Strategic Management
Basic Concept of Strategy & Strategic Management
On competition chapter 2 what is strategy
On competition chapter 2 what is strategy
What Is Strategy Smp
What Is Strategy Smp
CH 7 Pearce Robinson McGrawHill
CH 7 Pearce Robinson McGrawHill
Chapter 13.pdf
Chapter 13.pdf
Define a Powerful Go-to-Market Strategy That Sets Your Product Apart
Define a Powerful Go-to-Market Strategy That Sets Your Product Apart
Chapter 7 continuity the enabler
Chapter 7 continuity the enabler
Chap 2 Productivity
Chap 2 Productivity
Chapter 1 the fundamentals of managerial economics
Chapter 1 the fundamentals of managerial economics
Chapter_05_Business Level Strategy_2023.pdf
Chapter_05_Business Level Strategy_2023.pdf
Presentation 1
Presentation 1
Bisnal meeting 9 international competitive strategy
Bisnal meeting 9 international competitive strategy
Chp 1_Strategic Management _6e.pptx
Chp 1_Strategic Management _6e.pptx
Chapter 1
Chapter 1
ALIGNING STRATEGY AND PROJECT MANAGEMENT.pdf
ALIGNING STRATEGY AND PROJECT MANAGEMENT.pdf
competetive advantage.pdf
competetive advantage.pdf
OE -2013.ppt
OE -2013.ppt
What is Strategy? An Introduction to Strategic Positioning and Fit
What is Strategy? An Introduction to Strategic Positioning and Fit
Entrpreneurship -entrpreneurial strategies
Entrpreneurship -entrpreneurial strategies
Marketing Management Series 06
Marketing Management Series 06
Más de Michaelcmcdermott
Mastering business strategy simplifying the complex
Mastering business strategy simplifying the complex
Michaelcmcdermott
Rumelt strategy is not goal setting
Rumelt strategy is not goal setting
Michaelcmcdermott
A rumelt perspective strategy and smarter conquers better some non-business...
A rumelt perspective strategy and smarter conquers better some non-business...
Michaelcmcdermott
Recognizing fake strategy
Recognizing fake strategy
Michaelcmcdermott
A rumelt perpsective on good strategy
A rumelt perpsective on good strategy
Michaelcmcdermott
Strategy provides focus & course objectives
Strategy provides focus & course objectives
Michaelcmcdermott
The case study method
The case study method
Michaelcmcdermott
Exporting to chile
Exporting to chile
Michaelcmcdermott
Exporting to venezuela
Exporting to venezuela
Michaelcmcdermott
Exporting to france
Exporting to france
Michaelcmcdermott
Exporting to belgium
Exporting to belgium
Michaelcmcdermott
Understanding the russian market
Understanding the russian market
Michaelcmcdermott
Understanding the Canadian Market, PEST Analysis for Exporters to Canada
Understanding the Canadian Market, PEST Analysis for Exporters to Canada
Michaelcmcdermott
Business strategy from michael porter to blue oceans to what's the problem
Business strategy from michael porter to blue oceans to what's the problem
Michaelcmcdermott
Más de Michaelcmcdermott
(14)
Mastering business strategy simplifying the complex
Mastering business strategy simplifying the complex
Rumelt strategy is not goal setting
Rumelt strategy is not goal setting
A rumelt perspective strategy and smarter conquers better some non-business...
A rumelt perspective strategy and smarter conquers better some non-business...
Recognizing fake strategy
Recognizing fake strategy
A rumelt perpsective on good strategy
A rumelt perpsective on good strategy
Strategy provides focus & course objectives
Strategy provides focus & course objectives
The case study method
The case study method
Exporting to chile
Exporting to chile
Exporting to venezuela
Exporting to venezuela
Exporting to france
Exporting to france
Exporting to belgium
Exporting to belgium
Understanding the russian market
Understanding the russian market
Understanding the Canadian Market, PEST Analysis for Exporters to Canada
Understanding the Canadian Market, PEST Analysis for Exporters to Canada
Business strategy from michael porter to blue oceans to what's the problem
Business strategy from michael porter to blue oceans to what's the problem
Último
Nutritional Needs Presentation - HLTH 104
Nutritional Needs Presentation - HLTH 104
misteraugie
Mattingly "AI & Prompt Design: The Basics of Prompt Design"
Mattingly "AI & Prompt Design: The Basics of Prompt Design"
National Information Standards Organization (NISO)
Accessible design: Minimum effort, maximum impact
Accessible design: Minimum effort, maximum impact
dawncurless
Introduction to ArtificiaI Intelligence in Higher Education
Introduction to ArtificiaI Intelligence in Higher Education
pboyjonauth
Paris 2024 Olympic Geographies - an activity
Paris 2024 Olympic Geographies - an activity
GeoBlogs
Measures of Central Tendency: Mean, Median and Mode
Measures of Central Tendency: Mean, Median and Mode
Thiyagu K
Privatization and Disinvestment - Meaning, Objectives, Advantages and Disadva...
Privatization and Disinvestment - Meaning, Objectives, Advantages and Disadva...
RKavithamani
URLs and Routing in the Odoo 17 Website App
URLs and Routing in the Odoo 17 Website App
Celine George
INDIA QUIZ 2024 RLAC DELHI UNIVERSITY.pptx
INDIA QUIZ 2024 RLAC DELHI UNIVERSITY.pptx
RAM LAL ANAND COLLEGE, DELHI UNIVERSITY.
Contemporary philippine arts from the regions_PPT_Module_12 [Autosaved] (1).pptx
Contemporary philippine arts from the regions_PPT_Module_12 [Autosaved] (1).pptx
RoyAbrique
Staff of Color (SOC) Retention Efforts DDSD
Staff of Color (SOC) Retention Efforts DDSD
David Douglas School District
A Critique of the Proposed National Education Policy Reform
A Critique of the Proposed National Education Policy Reform
Chameera Dedduwage
Mastering the Unannounced Regulatory Inspection
Mastering the Unannounced Regulatory Inspection
SafetyChain Software
Organic Name Reactions for the students and aspirants of Chemistry12th.pptx
Organic Name Reactions for the students and aspirants of Chemistry12th.pptx
VS Mahajan Coaching Centre
Introduction to AI in Higher Education_draft.pptx
Introduction to AI in Higher Education_draft.pptx
pboyjonauth
18-04-UA_REPORT_MEDIALITERAСY_INDEX-DM_23-1-final-eng.pdf
18-04-UA_REPORT_MEDIALITERAСY_INDEX-DM_23-1-final-eng.pdf
ssuser54595a
mini mental status format.docx
mini mental status format.docx
PoojaSen20
Hybridoma Technology ( Production , Purification , and Application )
Hybridoma Technology ( Production , Purification , and Application )
Sakshi Ghasle
Kisan Call Centre - To harness potential of ICT in Agriculture by answer farm...
Kisan Call Centre - To harness potential of ICT in Agriculture by answer farm...
Krashi Coaching
Industrial Policy - 1948, 1956, 1973, 1977, 1980, 1991
Industrial Policy - 1948, 1956, 1973, 1977, 1980, 1991
RKavithamani
Último
(20)
Nutritional Needs Presentation - HLTH 104
Nutritional Needs Presentation - HLTH 104
Mattingly "AI & Prompt Design: The Basics of Prompt Design"
Mattingly "AI & Prompt Design: The Basics of Prompt Design"
Accessible design: Minimum effort, maximum impact
Accessible design: Minimum effort, maximum impact
Introduction to ArtificiaI Intelligence in Higher Education
Introduction to ArtificiaI Intelligence in Higher Education
Paris 2024 Olympic Geographies - an activity
Paris 2024 Olympic Geographies - an activity
Measures of Central Tendency: Mean, Median and Mode
Measures of Central Tendency: Mean, Median and Mode
Privatization and Disinvestment - Meaning, Objectives, Advantages and Disadva...
Privatization and Disinvestment - Meaning, Objectives, Advantages and Disadva...
URLs and Routing in the Odoo 17 Website App
URLs and Routing in the Odoo 17 Website App
INDIA QUIZ 2024 RLAC DELHI UNIVERSITY.pptx
INDIA QUIZ 2024 RLAC DELHI UNIVERSITY.pptx
Contemporary philippine arts from the regions_PPT_Module_12 [Autosaved] (1).pptx
Contemporary philippine arts from the regions_PPT_Module_12 [Autosaved] (1).pptx
Staff of Color (SOC) Retention Efforts DDSD
Staff of Color (SOC) Retention Efforts DDSD
A Critique of the Proposed National Education Policy Reform
A Critique of the Proposed National Education Policy Reform
Mastering the Unannounced Regulatory Inspection
Mastering the Unannounced Regulatory Inspection
Organic Name Reactions for the students and aspirants of Chemistry12th.pptx
Organic Name Reactions for the students and aspirants of Chemistry12th.pptx
Introduction to AI in Higher Education_draft.pptx
Introduction to AI in Higher Education_draft.pptx
18-04-UA_REPORT_MEDIALITERAСY_INDEX-DM_23-1-final-eng.pdf
18-04-UA_REPORT_MEDIALITERAСY_INDEX-DM_23-1-final-eng.pdf
mini mental status format.docx
mini mental status format.docx
Hybridoma Technology ( Production , Purification , and Application )
Hybridoma Technology ( Production , Purification , and Application )
Kisan Call Centre - To harness potential of ICT in Agriculture by answer farm...
Kisan Call Centre - To harness potential of ICT in Agriculture by answer farm...
Industrial Policy - 1948, 1956, 1973, 1977, 1980, 1991
Industrial Policy - 1948, 1956, 1973, 1977, 1980, 1991
M ichael porter strategy is not operational effectiveness
1.
Michael Porter -
Strategy is Not Operational Effectiveness By Dr. Michael McDermott mcdermottm1@nku.edu
2.
Structure 1. Common mistakes
in discussing strategy 2. The Limited Advantages of Being Better – Operational Effectiveness 3. The Significant Advantages of Being Smarter – Genuine Strategy 4. Smarter can beat Better 5. The Critical and Sustainable Advantages of Being Better and Smarter – Operational Effectiveness and Genuine Strategy 6. Smarter and Better is Invincible © McDermott, 2014. 2
3.
Common mistakes in
discussing strategy • Many people, including executives, often make the mistake of equating operational effectiveness with strategy: • Strategy is not: – transferring production to a lower cost location; or, – Increasing productivity; or, – Lowering costs • Improving operational effectiveness is great, but it’s not strategy © McDermott, 2014. 3
4.
What is Operational
Effectiveness (OE)? • It’s all about internal performance • It’s about being: – Better, or – Cheaper, or – Faster, or – Wider (i.e. more international) © McDermott, 2014. 4
5.
Nature and Limitations
of Operational Effectiveness Nature of OE Implications • OE means performing similar activities better than rivals perform them • Constant improvement or getting better is seldom sufficient for profitability • Constant improvement in operational effectiveness is necessary to achieve superior profitability. • And that is tough – hence many companies exit an industry where they have exhausted all possibilities © McDermott, 2014. 5
6.
Operational Effectiveness Constant improvement Being Better ©
McDermott, 2014. 6
7.
Operational Effectiveness Law of Diminishing Returns
and Others Narrow Gap Constant Improvement For example, the success of many Japanese companies was based upon being better and cheaper. But you can see that they are seeing their advantage eroded (i.e. South Koreans) © McDermott, 2014. 7
8.
Nature and Limitations
of Operational Effectiveness Nature of OE Limitations of OE • OE means performing similar activities better than rivals perform them • Constant improvement or getting better is seldom sufficient for profitability • Constant improvement in operational effectiveness is necessary to achieve superior profitability. • And that is tough – hence many companies exit an industry where they have exhausted all possibilities © McDermott, 2014. 8
9.
The Limitations of
OE • Those who rely exclusively upon OE are quickly overtaken • Just think of the TV, PC industries – Japanese topple US and Europeans – South Koreans/Taiwanese topple US and Japanese – Will Chinese topple South Korean and Taiwanese? © McDermott, 2014. 9
10.
Operational Effectiveness Explains
Initial Success of Asian Companies 1960s-80s Japanese companies are winners 1990s-2010s South Korean companies are winners © McDermott, 2014. 2020sChinese companies are winners 10
11.
Operational Effectiveness May
Deliver Advantage Briefly Being Better Operational Effectiveness © McDermott, 2014. 11
12.
Operational Effectiveness May
Deliver Advantage Briefly Temporary Competitive Advantage Operational Effectiveness © McDermott, 2014. 12
13.
Running out of
steam: the limitations of OE • Companies that are copycats simply exploiting differences in operational efficiency soon come undone; • Once gaps in OE narrow, such companies struggle; • Because they lack a distinct competitive position. • In short, they need to learn strategy! • In Porter’s terms they need to develop a unique competitive position © McDermott, 2014. 13
14.
Japanese Winners in
the Past According to Porter, since they were better, they did not need to be smarter © McDermott, 2014. 14
15.
© McDermott, 2014. 15
16.
Surely they were
more than just Better? • In the 1980s-1990s, Sony was “the Apple” of today. • Surely it was “smarter”, rather than just better? • What’s the difference between Sony then and Apple today? • Both made great products that are “better”, but Apple realized that its focus needs to be the consumer experience not simply the products. • Apple’s success may reflect a total customer-centric business model – that is “smarter”; • Sony’s focus was, and appears to remain, simply offering “better” products. © McDermott, 2014. 16
17.
Future Japanese Winners
Must Also Be Smarter Do they have genuine strategy? © McDermott, 2014. 17
18.
The Porter “Doctrine”:
Genuine Strategy and Operational Effectiveness Deliver Enduring Competitive Advantage 2013 Rita McGrath book is The End of Competitive Advantage Genuine Strategy Operational Effectiveness Sustainable Competitive Advantage I am not sure that any competitive advantage is sustainable © McDermott, 2014. 18
19.
Genuine Strategy and
OE Both are essential for superior performance Excellence in one is not enough for enduring success or competitive advantage © McDermott, 2014. 19
20.
Establishing Competitive Advantage 1 2 •
Deliver greater value to customers; • Kroger, Meijer, Netflix, Nike, Under Armor • Create comparable value at lower prices; • Coinstar, Dell, Samsung, Vizio • Do both 3 © McDermott, 2014. 20
21.
Creating Competitive Advantage: Effectiveness
vs Efficient More Effective More Efficient • Leads to greater valuecreation • Higher unit prices • Apple, BMW • Leads to Lower unit costs • Can offer lowest prices • Costco, Lenovo © McDermott, 2014. 21
22.
Creating Competitive Advantage: Effectiveness
vs Efficient More Effective More Efficient • Results in differentiation competitive advantage • Results in lowest cost competitive advantage © McDermott, 2014. 22
23.
OE and Buyers •
Continuous improvements in OE proves of enormous benefits to buyers; – Today we can buy a USB stick at Wal-mart for less than $5 that has more memory than a computer that cost $000s in the 1980s; • But this is a nightmare scenario for companies that are sucked into damaging price wars; – Who makes a profit as a PC producer today? © McDermott, 2014. 23
24.
© McDermott, 2014. 24
25.
Examples of Strategically
Smart The Smarts The Laggards • Tend to be ‘different’ • Are innovative • Imitate and emulate their national rivals © McDermott, 2014. 25
26.
OE and Competition •
Companies converge • They all follow the exact same strategic path – From “made-in-China” to “sold-in-Wal-mart” • And this is a race that no producer wins – So let’s reduce the number of ‘runners’ – and acquire our rivals • In a ‘buy or be bought’ world, no one enjoys true competitive advantage © McDermott, 2014. 26
27.
It does not have
to be this way! © McDermott, 2014. 27
28.
Competitive Strategy is about
being different! © McDermott, 2014. 28
29.
Determining Strategic Position •
Perform similar activities differently Activities • Or perform different activities Value • Deliver a unique mix of value © McDermott, 2014. 29
30.
© McDermott, 2014. 30
31.
What do those
on previous slide offer? • Often low cost • Because they do things differently • But in addition to that they often ‘break the rules’ in order to better meet the needs of their target market © McDermott, 2014. 31
32.
© McDermott, 2014. 32
33.
What do those
on previous slide offer? • Often differentiation • Because they do things better • But in addition to that they often ‘break the rules’ in order to better meet the needs of their target market © McDermott, 2014. 33
34.
Nature of Strategic
Positioning • Means performing different activities from rivals or performing similar activities in different ways • Competitive advantage requires developing a distinct strategic position © McDermott, 2014. 34
35.
What’s the Solution
to Developing Good Strategy? 1. According to Porter, it’s focusing upon creating a strong competitive position (i.e. developing a strategy) and then milking it; 2. Kim & Mauborgne suggest that the solution is developing a Blue Ocean Strategy 3. Rumelt suggests that the company must focus all energies on its “big issue” problem 4. Montgomery emphasizes the CEO as the “Guardian angel” of company strategy 5. Lafley and Martin stress it’s making tough choices 6. McGrath stresses that it’s the ability to “ride the waves” – knowing when to get off and get on many waves…knowing that some “rides” are a “success” and others a “disappointment”. © McDermott, 2014. 35
Descargar ahora