What Is Strategy

Philip Thomas Lui What is Strategy: Reflection Paper STRATMA K38

As defined in the article Strategy if different from Operational effectiveness because strategy refers to the creation of unique and valuable position, involving a different set of activities like serving fewer needs or serving broad needs of few consumers. While the book defines Operational effectiveness as performing activities better with faster or with fewer inputs and defects. In short strategy is different because it is choosing what not to do and where to focus in order to be successful.

In my opinion, operational effectiveness is necessary in formulating and implementing a successful strategy because a marketing strategy without the backing of proper and efficient performance will just lead to profit or market share loss. In order for a strategy to work, one must be sure that all parts of the organization are running efficiently enough to back up its claims.

It is discussed in the article the case of Southwesth Airline Company in contrast to full service airlines. The article explains that while a full service airline who tries to cater to almost every passengers by offering a large number of destinations. They have created connecting flights and employ a hub-and-spoke system that connects to every major airport. To accommodate the passengers that do have to change planes coordinate schedules and check and transfer baggage. They also aim to attracted passengers that desire comfort by offering first-class and business-class services and often serve several means for long flights.

In contrast Southwest has come up with a competitive strategy by making all its activities low cost by offering short haul flights, point-to-point services between mid sized cities and secondary airports in large cities....