Strategic Positioning and Operational Effectiveness Paper Example

In his article "Operational Effectiveness v Strategy" Michael P explains that strategic positioning is better than operational effectiveness. The reason being that operational effectiveness entails a company coming up with a new best practice for its benefit. This does not help the company for long because once such a practice is established, then other companies begin to copy it. On the other hand, strategic position involves doing things differently other than doing them better than all the people. This is where the difference lies making the companies that use strategic positioning ahead than the others. Jones in his article also agrees with the idea by Michael, that the way we do things entails strategic position is different that a company can use various strategies in their performance and make better progress than all others. Unlike operation if a company takes practice from another makes it better and different from the original.

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From the book, patents are used to protect intellectual property from the people who take the idea of others and try to make similar products. This is more of operational strategy. If a company has a patent, them they are protected from the brands that only want to copy their ideas. Using patents is a barrier because for example in the United States it is very expensive for them to use patents because it costs about $5 million. At the same time, some patents are nullified using court orders thus leaving the hands of a company tied against persons who copy their ideas destroying the reputation since the products are not of similar quality.

Conclusion

There exist some barriers especially where the business involves technology. An example is with Yahoo! Gmail and Hotmail. It is still evident that despite Gmail being used by most users the rest still have persons using them because they were established earlier. Once an organization launches its product at a later stage than others, the way they perform determines how far they will go and the progress that will be made. Using strategy which involves doing things differently will promote progress. Black in his article provides a detail of the challenges that are faced as inventors intend to start their own businesses. The factors are economies of scale where it is evident that where bulky products are used, the losses are contained unlike when the products are in less amounts. Second is difference in product as a result of different customers and the position of business. Third the capital required to start is high at times. These are some of the challenges faced but with effort and proper plan to move ahead as they do things differently like Google and Netflix, the challenges will be contained.

Works cited

Michael P "Operational Effectiveness v Strategy." Retrieved on 21st January 2019 from https://www.isc.hbs.edu/strategy/business-strategy/Pages/operational-effectiveness-vs-strategy.aspx p 1

Jones P "Strategy v operational effectiveness: be clear of the difference." Retrieved on 21st January 2019 from https://www.excitant.co.uk/strategy-vs-operational-effectiveness-be-clear-of-the-difference/ 2018 p 1

Black C "Barriers to entry: Factors preventing startups from entering a market." Retrieved on 21st January 2019 from https://www.marsdd.com/mars-library/barriers-to-entry-factors-preventing-startups-from-entering-a-market/ 2013 p 3

Creative Commons "Barriers to Entry, Technology and Timing" Retrieved on 21st January from https://2012books.lardbucket.org/books/getting-the-most-out-of-information-systems-a-managers-guide-v1.1/s06-03-barriers-to-entry-technology-a.html p 1-5