What is strategy

Question 1

What is Startegy:

Answer 1

New dynamics of competition: Competitive advantage is temporary, because rivals can quickly copy any market position: choose activites that are different fromrivals, strategy is about combining activites

Question 2

Operational Effectiveness

Answer 2

performing similar activites continually better than rivals perform them, tries to enhance the productivity frontier, Achieiving excellence in individual activities or functions get more out of their inputs than others eliminate wasted effort advanced technology employees better greater insight

Question 3

productivity frontier

Answer 3

the sum of all exisiting best practices at any given time

Question 4

strategic positioning

Answer 4

performing different activities from rivals or performing similar activities in different ways: variety-based needs-based access-based

Question 5

Problems of OE

Answer 5

Imitation: rapid diffusion of best practices Competitive convergence: the more someone outsources -> more generic activites -> no one can win

Question 6

strategic fit

Answer 6

Combining strategic activites to an arrangement that reinforce themselves, generate greater value and are not easy to imitate fit: Configuration of individual activites and the arrangement how they relater: enahnce uniqueness and amplifies trade-offs

Question 7

types of fit

Answer 7

first order fit: simple consistency between activity and strategy second order fit: activites are reinforcing and mutually supportive thrid.order fit: optimization of effort -> the more second and throd order, the more sustainable advantage (innovative and quickly)

Question 8

Summary What is strategy:

Answer 8

continually improve operational effectivness ongoing effort to be unique while strengthening the fit among its activities choose position to find new trade-offs -> sustainable advantage