Business Strategy Business & Marketing Essay Paper (Essay Sample)

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Course
Institution
BUSINESS STRATEGY
What is the difference between operational effectiveness and strategic positioning?
The established view of competitive advantage in the world of business has been activities or a set of actions. That allows a company to either create better consumer value than rivals or to create the same quality at a lower cost. These activities thus lead to a situation where the company can charge more than the competitors or has a lower price for its products, thus driving profitability upwards (Porter, 3). Any such set of activities when performed better than the rivals lead to better operational effectiveness. Hence operational efficiency is the pursuit of perfection in the same activities that others do. Thus, this is self-limiting as once all the possible best practices are adopted given a set of technological constraints, the companies would be limited to the boundary of the Productivity Frontier. Also, since most methods can be replicated, following such activities do not lead to a sustained advantage. But instead lead to competitive convergence, a situation where every company attempts to reach the productivity frontier and offers similar products and services, intensifying competition.