10 Must-Read Articles from HBR as of 2010/2/5

Title: What Is Strategy?. Michael Eugene Porter 2010/08

Harvard Business Review; Nov/Dec96, Vol. 74 Issue 6, p61-78

Abstract
From Abstract
sustainable profitability
Effectiveness (techniques) is not sufficient.
Essence of strategy is choosing a unique and valuable position rooted in systems of activities.
case: Ikea and Vanguard
Making trade-offs among activities is critical to the sustainability of a strategy.
Managing fit across all of a company's activities enhances both competitive advantage and
sustainability.
KeyWord :
B I. Operational Effectiveness Is Not Strategy
E Operational Effectiveness: Necessary but Not Sufficient
F II. Strategy Rests on Unique Activities
O III. A Sustainable Strategic Position Requires Trade-offs
R IV. Fit Drives Both Competitive Advantage and Sustainability
E Fit and Sustainability
V. Rediscovering Strategy
The Failure to Choose
The Growth Trap
Profitable Growth
The Role of Leadership
Japanese Companies Rarely Have Strategies
The Connection with Generic Strategies
Interesting Point

Important Concept from my view or author’s

Operational Effectiveness ≠ Strategic Positioning, Fit (components fit > components
themselves)
A
F I got an idea!
T 포터가 96년 시각에서는 일본기업을 비전략적으로 평가했다.
E 건진 개념: Competitive convergence, ‘Fit among activities(components)’
R Etc.
(born 1947) Roland Christensen Professor of Business Administration, Harvard Business School, Boston, Massachusetts

Pag
e Note
62 A company can outperform rivals only if it can establish a difference that it can preserve.
62 Operational effectiveness (OE) means performing similar activities better than rivals perform
them.
62 Operational Effectiveness vs. Strategic Positioning (picture1)
63 일본기업: consensus oriented 성향으로 악명 높다. 그래서 서로 따라 하고, 조직 내에서도 차이를 중재
하려고 하지 차이(차별화)를 종용하지 않는다. 전략은 힘든 결정을 요구하는 법인데 그들은 못한다.
64 Competitive convergence (이렇게 표현하니 멋있다!)
64 The essence of strategy is choosing to perform activities differently than rivals do.
이
64
Southwest Airlines, hub-and-spoke system ( 표현이 여기에서 쓰여졌구나! 아싸.)
66 Strategic positions can be based on customers’ needs, customers’ accessibility, or the
variety of a company’s products or services.
가
68
trade-off 일어나는 세가지 이유
1. inconsistencies in image or reputation (influencing on credibility)
69 2. activities themselves (차별화 상품을 위해서 필요한 차별화된 생산시스템?)
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 3. Priority for internal coordination and control
70 Fit drives both competitive advantage and sustainability.
70 Fit locks out imitators by creating a chain that is as strong as its strongest link.
70 While operational effectiveness is about achieving excellence in individual activities, or
functions, strategy is about combing activities.
70 Fit is a far more central component(핵심역량, KSF, etc.) of competitive advantage than
most realize.
72 Three types of Fit
74 Strategic positions should have a horizon of a decade or more, not of a single planning cycle.
75 Strategy is creating fit among a company’s activities.
75 Growth Trap (두 마리 토끼를 한 번에 잡을 수 없어서)
76 Questions for reconnecting with Strategy (전략을 점검할 수 있는 핵심질문 5개)
1. 우리 상품과 서비스 중에서 가장 독특한 것은 어떤 것인가?
2. 우리 상품과 서비스 중에서 수익성이 가장 좋은 것은 어떤 것인가?
3. 어느 고객이 가장 만족해 하고 있는가?
4. 어떤 고객, 어떤 채널, 어떤 구매 상황이 가장 수익성이 좋은가?
5. 가치사슬 중에서 가장 차별화(different)되어 있고 가장 효과적인 것은 어떤 것인가?
77 At general management’s core is strategy: defining a company’s position, making trade-offs,
and forging fit among activities.

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