Synopsis Michael E. Porter Lecture on “What is Strategy” to University of North California
Michael Porter mentioned that a strategy is word that describes a lot of things which can be looking at big bigger picture such as on how the organization is going to win in its environment. However, many are struggling to find the right strategy and moreover, the good strategy when poorly executed is not going to success. As such, Michael Porter stressed that we need to have a great strategy sense on how the organization going to commit. The fundamental strategic challenge of organization is most of the organization wanted to be best company in their industry. However, Michael Porter stressed that thinking of competing is not the good idea for a company to succeed and there is no best company in any industries. As such, the starting point to think about strategy is not being the best, instead to think about how an organization can create unique value for the customer. Strategy is the creation of a unique and valuable position, involving a different set of activities. If there were only one ideal position, there would be no need for strategy. A strategy is different than goal because strategy is how we position ourselves in the organization. Therefore, strategy must be separated to any particular action that they want to take. Strategy is the position that we need to occupy in the market place and in the advantage which will compete. Strategy is different than vision and mission and is very concrete, specific, and it’s really about the choices that we make on how we going to deliver the unique value to customer. Strategy defines the company’s distinctive approach to competing and the competitive advantages on which it will based.
Company economic performance results from two distinct causes known as strategic thinking. The strategic thinking encompasses Industry Structure and Strategic Positioning within the industry.
Although the industry structure of each...
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