Porter, M. E. 1996. What is a strategy? Harvard Business Review (November-December): 61-78.

Management control systems and strategy: This is dependent on the intensity and then the basis on which they compete. Technology, capital or skills are important but not everything to achieve competitive advantage. Johnson, M. Whatever the basis variety, needs, access, or some combination of the three , positioning requires a tailored set of activities because it is always a function of differences in activities or differences on the supply side.

Michael Porter - Wikipedia

To keep up with the continuous shifts in the productivity frontier, managers have adopted techniques like continuous improvement, empowerment, learning organization, etc. Sign In Forgot Password? How strategy shapes structure. Share Click to share on Twitter Opens in new window. Articles Cited by. Steiner was writing in , at roughly the mid-point of the rise of strategic planning.

A summary of Michael Porter’s “The Five Competitive Forces That Shape Strategy” Branching Out

Add co-authors Co-authors. Share this: He asks for courage and leadership to make deliberate decisions to limit a companies reach and at the same sharpen its focus. Simple consistency between each activity function and the overall strategy. Harvard Business Review November-December: Buyers are especially powerful if they have negotiating power in the industry.

Harvard Business Review, November-December: How will we distribute our products and services? Although their needs are similar to those of other customers, the best configuration of activities to reach them is different.

The book is based on studies of ten nations and argues that a key to national wealth and advantage was the productivity of firms and workers collectively, and that the national and regional environment supports that productivity. Evolution of Competitiveness Theory.

The book received the James A. Strategy is about finding a unique position by combining a unique set of activities. Porter thus traces the economic basis of competitive advantage down to the level of the specific activities a company performs.

Strategy: Definitions and Meaning

Namespaces Article Talk. In general, value is destroyed if an activity is over designed or under designed. Princeton University Harvard Business School. This article has benefited greatly from the assistance of many individuals and companies.

Strategy According to B. On what basis will we compete? Notify me of new posts via email.

What is Strategy? (Porter 1996)

Retrieved January 27, New articles by this author. Differences in profitability compared with competitors arises because of activities chosen in order to deliver customer value. Partner Center.

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