Porter, M., 1996. What Is Strategy? Harvard Business Review. Reprint 96608

Strategy is about Achieving profitability, the creation of a unique and valuable position, involving a different set of activities, different than rivals (if there were only one position, there would be no need for strategy). Making trade offs in competing. The essence of strategy is choosing what not to do. Without trade offs, easy to copy (theres no strategy). Prime goal is superior performance, be profitable through 2 main elements.

1 OPERATION EFFICIENCY ( benchmark competition , best practices, improve productivity and build efficiency how? - similar activities than the rivals but in a better way – promotes constant change, achieve OE and need of flexibility- productivity frontier, best in class. OE is not enough because competitors start to imitate the best practice, homogenitydrive competitive convergence). Moving toward ppf( product possibility frontier) here decisions don’t imply tradeoffs. Doing things right

2 COMPETITIVE STRATEGY is about being different is about being different (chose a set of activities to deliver a mix of value. Choosing to perform differently than rivalsdecisions imply tradeoffs, do the right things. BUILDING A STRATEGY 1 MAKE THE TRADEOFFS trade offs arise for 3 reasons : 1inconsistencies in image and reputation, 2different positions require different machinery people system, 3 limits on internal coordination and control 2TIGHTEN TO FIT strategy is about combining activities into a system. Southwest= a whole 100collection of integrated activities (not a collection of parts) same aircraft no seat assignment, no meals. 3 types of fit: optimization or coordination, consistency (integrated system ) and reinforce activities. Difficult tom copy when there are so many activities to change from the competitors. The advantage is sustainable when company’smpositioning rest on activity system.