Business and Operation Strategy Essay Example | Topics and Well Written Essays - 2750 words

Business and Operation Strategy - Essay Example Business strategy is the way in which companies achieve competitive advantage and according to Ohmae (1982), it is an instrument of competition in a competitive market as what distinguishes this from other types of planning is merely competitive advantage. Porter’s (1980) main idea of business strategy is that competitive advantage in a company can be created by low cost or differentiation and these instances can become meaningful in a broad or limited market. The strategy here is in the form of a two by two matrix in internal and the market perspectives in competitive advantage of a firm where there is cost differentiation and market range. Porter (1985) believes that companies in major cases adopt one of these strategies but if a company chooses to apply more than one strategy it defeats the object due to the cost leadership and differentiation strategies are incompatible, differentiation usually increases the cost. Operational excellence describes a distinct strategic approach to production and providing services and products where the aim of this strategy is to hold price leadership in the industry.