Strategy

Strategy (Michael Porter’s Definition)

Strategy is about being different.
It means choosing a unique position and deliberately performing different activities—or performing similar activities in different ways—than competitors, in order to deliver distinct value.

What Strategy Is (According to Porter)

1. Choice
   
   

   • Strategy requires clear choices about what you will do and, just as importantly, what you will not do.
     
     

   • If you try to serve everyone, you have no strategy.
     
     

2. Unique Value Proposition
   
   

   • You must define who you serve, what needs you meet, and why you’re different.
     
     

   • Competitive advantage comes from uniqueness, not imitation.
     
     

3. Activity System
   
   

   • Strategy is not one action—it’s a system of reinforcing activities.
     
     

   • The activities must fit together so that competitors can’t easily copy just one piece.
     
     

4. Trade-offs
   
   

   • Real strategy involves trade-offs.
     
     

   • You intentionally give up certain opportunities to strengthen your chosen position.
     
     

5. Sustainability
   
   

   • Operational excellence can be copied.
     
     

   • A well-designed strategy is harder to replicate because it’s rooted in fit, not speed.
     
     

What Strategy Is NOT (Porter Is Very Clear Here)

• Strategy is not operational effectiveness
  
  

• Strategy is not best practices
  
  

• Strategy is not growth, ambition, or vision statements
  
  

• Strategy is not reacting to competitors
  
  

You can be efficient without being strategic.

One-Line Porter Summary

Strategy is choosing a unique position, built on trade-offs, sustained by a system of activities that fit together.