MGCR 331 Chapter Notes - Chapter 2: Freshdirect, Human Resource Management, Customer Relationship Management
28 Mar 2013
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Chapter 2: strategy and technology: concepts and frameworks for understanding what. How to achieve sustainable advantage: according to michael porter: Many firms defined themselves according to operational effectiveness rather than strategic positioning. Performing the same tasks better than rivals perform them. This risk is particularly acute in firms that rely on technology for competitiveness. When savvy rivals watch a pioneer"s efforts, learn from their successes and missteps, then enter the market quickly with a comparable or superior product at a lower cost. Since tech can be copied so quickly, followers can be fast. Not a source of competitive advantage but not limited to the web. Firms must invest in techniques to improve quality, lower cost, and generate design- efficient customer experiences. Therefore, operational effectiveness is not sufficient enough to yield sustainable dominance over competition. In contrast to operational effectiveness, strategic positioning refers to performing different activities from those of rivals, or the same activities in a different way.
