Definition of Strategy:  So to me, strategy is a distinctive array of interdependent choices that address certain questions.   Product mix : the product where we have a lot margin can shift the whole lot to that product.   For me, a firm has competitive advantage if it outperforms its industry peers.   OPERATIONAL EFFECTIVENESS: TO ALL THE THINGS THAT REDUCE THE OPERATIONAL EXPENSES. THATS NOT ONLY EFFECTIVE, We need Strategic positioning also.

The Types of Fit  1.  Internal Fit:   So here, we really want to understand how do the activities, how do the resources, how are the capabilities that a firm has put in place, how do they interact? And how are they consistent with the overarching strategy, with the positioning that the firm tries to achieve in the marketplace? is the organization's incentive system aligned with the objectives of the firm :?   2. External Fit: There we have to understand the industry. We have to understand competitors. We have to understand customers. 3. Dynamic Fir:    1. competitor and technological changes

Difference Between OE and SP   We have a competitive advantage when we are able to serve in higher price and lower cost. In the particular industry. CA (COMPETITIVE ADVANTAGE) IS DIRECTLY PROPORTINAL TO (P-C). HIGHER PRICES - LOWER COST  But the question is how can we achieve it ?? just by copying the competitor. ??   We have to take care in MIND  what is operational effectiveness ? what is strategical positioning ??   operational effectiveness: to do the best practices.  strategical positioning: to do things differently.   because if we are all racing to the same spot, it is not completely clear how much benefits there actually are, even if we get there first because others will probably catch up with us pretty quickly. So I would much rather think about strategy as the creation of something different, involving a different set of activities finding a different location.

The above image is the graph between differentiation and relative cost position . To have competitive advantage have a different point on thepossiblity of frontier. You should be and think differently. This the graph that has been observed.   having different spot means the underlying set of activites is totally differenet.

the company intel switch from memory chip company to micro processor company.

we have to do one thing differently or different things differently. Think so that the company sustained the CA for long time.  Intel from memory chips to microprocessor.  They were the best products design.   To make the competitive advantage. We must look at each every activity so that we may get competitive advantage and have lower cost and higher prices. To break each and every process into different pieces so that we can get a competitive advantage. Break each and very process into smaller pieces. Task 1. break up the firm each and every activity and tell how it is different from our competitors so that we get CA   Break each step and study. on the image on the chart

the things we need to do to think differently and make it so that our competitor does not do the same thing as we make the and make use CA of it.   From purchasing to raw material and other consumable to do and note down each and every step make it simpler steps and think differently so that we could get competive advantage.   If changing the customer type the revenue increases but also make the sure that we does not have growth trap. We should have see the profitability does not decrease.

To change the way of dealing. what is the benefit the customer are getting out of it ??   These two question that we need to answer what are the explicit trade-offs that we are engaging in ? The second really key question is around which of our activities are reallyj ust best practices and are pushing merely operational effectiveness ahead? Whereas, which practices are really strengthening our strategic distinctiveness and really strengthen our competitive advantage? Please think and answer the above question so that we may get the answer to it.