Operational Effectiveness vs Strategic Positioning in Dynamic Markets

Classified in Economy

Written on in English with a size of 744 bytes

Operational Effectiveness (OE) means performing similar activities better than rivals perform them. Operational effectiveness includes but is not limited to efficiency. It refers to any number of practices that allow a company to better utilize its inputs by, for example, reducing defects in products or developing better products faster. In contrast,
strategic positioning means performing different activities from rivals’ or performing similar activities in different ways.
Positioning is rejected by many managers as too static for today’s dynamic markets and changing technologies. Nowadays rivals can quickly copy any market position, and competitive advantage is temporary.

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