Question

What does Porter mean by “operational effectiveness”?

Why, according to Porter, is operational effectiveness not a strategy?

Porter says that the key to strategy is identifying and focusing on core competencies and unique advantages. Does this suggest that only focus strategies (in the generic sense) are truly sustainable?

Does Porter’s example of Southwest Airlines (SWA) contradict the claim that operational effectiveness is not a strategy? Why or why not? [References to recent and continuing developments in the airline industry and SWA's strategic positioning welcomed as contributions to this discussion.]

As you complete your discussion analysis, ensure you support it with a minimum of 3 resources and a minimum of 3 intext citations applying the resources to your analysis in alignment with APA. Review the rubric of evaluation for assignment of points as well as the sample discussion I am providing. Begin a new paragraph for each part of the discussion to ensure you analyze each part of the discussion. Each discussion part should be thoroughly discussed and supported.

Answer 1

By operational effectiveness, Porter refers to the activities, which can be performed better than the competitors, thus establishing competitive edge of the company. This philosophy is not just focusing on the efficiency of a system but also lays importance to the business practices and processes followed for better utilization of resources and inputs.

Porter considers that there is a clear difference between operational effectiveness and strategy. Operational effectiveness cannot be considered similar to that of strategy, it is actually a prime component of strategy. Competitor organizations may have very similar strategy but they have a differentiating factor in the form of operational effectiveness.

Focused strategy is one of the generic marketing strategies. Focus strategy aim at providing a specialized service or attribute of business in the niche segment. This strategy helps in establishing better connect with the target consumers and provide low-cost products in the market. Focus strategy can further be subdivided into cost focus or differentiation focus strategy. Focused strategy helps in maintaining the objective of the business processes in the long run, so can be considered a sustainable process. In my views, almost all generic strategies aim at establishing sustainability in the long run.

Southwest Airlines are actually employing on operational effectiveness in the name of strategy. There is a very thin line between strategy and operational effectiveness and companies need to understand the demarcation. However, SWA mixed the both concepts and thus led to the controversial discussion that operational effectiveness is not a strategy.

https://www.isc.hbs.edu/strategy/business-strategy/Pages/operational-effectiveness-vs-strategy.aspx

https://www.mindtools.com/pages/article/newSTR_82.htm

https://www.ifm.eng.cam.ac.uk/research/dstools/porters-generic-competitive-strategies/