<aside> 💡 "Strategy is about being different. It means deliberately choosing a different set of activities to deliver a unique mix of value."

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"Operational effectiveness is necessary but not sufficient for achieving superior performance. A company must also have a distinctive strategic position."

<aside> 💡 "The essence of strategy is choosing to perform activities differently than rivals do."

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• Strategy is not about being the best at everything. It is about choosing to perform activities differently than rivals do.
• Operational effectiveness is the means by which a company delivers its chosen value proposition. It refers to any number of practices that allow a company to better utilise its inputs by, for example, reducing defects in products or developing better products faster.
• Strategic positioning is the foundation of above-average performance. It means performing different activities from rivals' or performing similar activities in different ways.
• Strategic positions can be based on customers' needs, customers' accessibility, or the variety of a company's products or services.
• Trade-offs are essential to strategy. Companies cannot be all things to all people. They must choose to focus on a particular set of customers or needs, and they must tailor their activities accordingly.
• Fit is another essential element of strategy. The activities of a company must be mutually reinforcing. They must work together to create a sustainable competitive advantage.
• The competitive value of individual activities cannot be separated from the whole. The value of an activity depends on how it fits with other activities in the value chain