Mp in Vn

In 2008, Dr. Michael Porter - the leading authority on competitive strategy, was invited to be the speaker for a business seminar held in Ho Chi Minh City with a topic “Global Competitiveness & Competitive Advantage of Viet Nam”

Here are some key issues Professor Porter discussed on global competitiveness, company strategy for developing

Professor found out that a basic question when it comes to strategy is about company’s roles in gaining competitiveness. A typical thinking about competitiveness is the need to be the best company in your business. This is based on the logical thinking of human beings that is to be number one in whatever you do. However, there is no such thing as best car, best bank, best company, … it really vary depending on different perspectives.

There are many ways to compete and giving the customers what they need. Therefore, challenge in strategy is not to be the best, but to be unique. In other words, this means your company has to give customers the value that your rival can’t. Vietnamese companies need to learn how to become distinct, how to promote their unique positions, not just copying each other by doing the same things. It’s time to think about how to be unique in order to gain competitive advantage.

Professor also listed out three misconceptions about strategy. Firstly, people tend to confuse between strategy and particular actions that they’re going to take. You cannot mistake strategic steps for strategy. Strategy is about where you’re going, the market position you want to reach. Secondly, some firms proudly make statement of strategy about becoming number one in the industry, or making an impressive growth in the following years. However, that is only hope, not strategy; Strategy is how you’re going to be different. The two concepts that must be separated are “strategy” and “goal”, also “strategy” and “vision” which make the third misconception.

In short, strategy is to find your competitive advantage, and a firm’s...