Citation
What Is Strategy?
TL;DR
Operational effectiveness is necessary but not sufficient for advantage
Introduces the concept of strategic convergence - when operational improvements diffuse industry-wide, eroding competitive advantage. Porter argues sustainable advantage requires being different, not just better.
This paper anticipates the chapter's thesis from a strategy perspective: convergence on operational practices is inevitable, but differentiation on strategic positioning can be sustainable. The biological framework adds mechanistic explanation for why this occurs.
Key Findings from Porter (1996)
- Operational effectiveness is necessary but not sufficient for advantage
- Best practices diffuse rapidly, causing strategic convergence
- Sustainable advantage requires unique strategic positioning
- Being different matters more than being better on convergent dimensions