Business Strategy and What companies do to stay competitive
 

What is Business Strategy, and What do companies do to stay competitive?

I think porter has many good points about strategy and what companies need to do to stay competitive. The first strategy he mentioned was operational effectiveness. Operational effectiveness is important because you have to be better than your rival to gain market share. A company can only outperform its rivals if it can establish a difference that can be preserved over time. Some companies think that being different is the strategy. Other companies say that strategic positioning is important.

Any strategy can be imitated by a competitor and taken into practice. Therefore, companies have to make trade offs in competing. They have to decide what to do, and what not to do. It all depends on the company’s operational effectiveness. Constant improvement on operational effectiveness is really important to stay on top in any business. These are the methods that porter says you have to take into account in order to have a company that can outperform rivals.

I think that strategy is very important for the success of a company. Working on a company image is really important in the market today. Everything is based on branding, and if you are not a quality brand then consumers will pick your rival. Much of business has to do with positioning, or where you place yourself in the market. Therefore, what Porter says about being different is very important. I think that it is all about adjustment within your company. Business changes every day, and your company has to adjust with business in order to succeed.