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What Is Strategy? / Michael E. Porter

By: Material type: TextTextLanguage: English Publication details: Harvard Business Review 1996ISSN:
  • 0017-8012
Subject(s): Online resources: Summary: For nearly two decades, managers have followed new rules: be flexible, benchmark constantly, outsource efficiently, and focus on core strengths. Traditional positioning has been dismissed as too static, with the belief that any advantage is short-lived. Yet these are dangerous half-truths. While globalisation and agility matter, much of today’s so-called hypercompetition is self-inflicted. The real problem is confusing operational effectiveness with strategy. Tools like benchmarking or reengineering improve performance but don’t create lasting advantage. As managers chase improvement on every front, they risk losing clear, sustainable competitive positions.

For nearly two decades, managers have followed new rules: be flexible, benchmark constantly, outsource efficiently, and focus on core strengths. Traditional positioning has been dismissed as too static, with the belief that any advantage is short-lived.

Yet these are dangerous half-truths. While globalisation and agility matter, much of today’s so-called hypercompetition is self-inflicted. The real problem is confusing operational effectiveness with strategy. Tools like benchmarking or reengineering improve performance but don’t create lasting advantage. As managers chase improvement on every front, they risk losing clear, sustainable competitive positions.

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