WHAT IS STRATEGY BY MICHAEL PORTER In todays progressive, influential, energetic markets and technologies have called in to question the

feasibility of competitive, rival advantage. Under compression to improve productivity, quality and speed, managers had grasp and clinch tools such as total quality management , benchmarking, and reengineering, which resulted operational effectiveness or improvements, successively the tools had taken the place of strategy. As managers thrust to improve operational effectiveness, while in this way they skipped themselves from viable competitive positions. Making an effective strategy is essential for first-class performance, which should be the elementary goal of any enterprise. So for outer performing the competition, industries need effective strategy. No doubt operational

effectiveness is necessary for first-class performance, but it is not competent, acceptable and plentiful; because its tactics, art, and approach can be easily adopt and imitate by any company. As operational effectiveness refers to adopting many practices that allow a company to utilize its inputs, to maximize the use of inputs by developing products at a faster pace than the competitors. Operational effectiveness is necessary for superior

profitability but not simply enough. Competitive strategy means being distinctive, different and unique ; means choosing unique, different set of values or adopting the same things differently. In simple words following your own path. The scale of a strategic position is based on: 1. Customers needs that is company should must handover greater value to the

customer, at a lower cost, however most companies compete operational effectiveness. 2. Secondly

on the base of

needs-based positioning which means to target the needs of the selective

customers in a best way. 3. Thirdly access-based positioning means the segmentation on which a company had already done, to reach it to the particular customers in a best way

A supportable strategic position needs Trade-offs. In order to be viable there must be trade-offs with other positions. Trade-offs means compromise to achieve something you have to leave

something. A situation comes one quality or aspect of something in return of gaining another quality or aspect. So according to porter strategy can also be defined as making trade-offs in competing. Means at competitive level company should not involve themselves in delivering two conflicting

things at the same time, because might be the company lose its credibility and reputation at the same to all customers. Operational effectiveness focused on specific activities, while competitive focus on combinative activities. Strategies rest on doing unique activities. Strategy involves a combination of activities, not a single part of the activities. There are three primary porter generic strategies which are being adopted by different companies. These are the following strategies: 1. Cost Leadership Means admirable profit by lower cost. This is being adopted by Wal-Mart. Tesco. 2. Differentiation. Building a product or service that recognized unique. Example of McDonald, FedEx. 3. Focus. Emphasizing or focusing over limited part of the market. Example of PepsiCo. So in order to be on track, successful, prosperous merely focusing on operational effectiveness is not worthy, companies needs to adopt competitive strategy as well. They need to boost its uniqueness. Being a business man one should have to keep an eye on every side of the business, because a firms success is measured by how it positions itself in competitive environment. One example is of the RAHAT BAKERS, who are running in the bakery business since half century.it was started in 1950 in Lahore by five Brothers and Rahat Bakers as Brand, and as a register Trade Mark of Rahat Bakers The conflict arises when Chaudhary Arshad and his brothers deceive their family by starting a private firm naming Chaudhary Associates, in 2003. They tried to transfer the Trade Mark of Rahat Bakers, but they remain powerless to do this act.

However they opened franchises by naming Rahat Bakers and were getting large sum of money, the reason was clear that Rahat Bakers main focus was on making the quality products and operational effectiveness while there was no specific strategic direction to protect their model because the effectiveness of operation can be imitate but right direction can sustain for a decades.