What Is Strategy?

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Questions: 1. What is operational effectiveness? What is strategic positioning? 2. In which ways are Southwest Airlines and Ikea different from their competitors? Give examples from article. 3. What happened to Continental Lite? 4. What is growth trap? Give 2 examples from the article What is Strategy? Operational effectiveness is the process in which a company performs similar activities better than their rivals perform them. This process includes, but is not limited to, efficiency. It generally refers to any number of practices that allows the company to better utilize its inputs (e.g. “reducing defects in products or developing better products faster”). While in contrast, strategic positioning is performing different activities from that of a rival or by performing similar activities in different ways. Southwest Airlines and Ikea are both considered cost-based focusers; “Ikea’s focus is based on the needs of a customer group, and Southwest is based on offering a particular service variety.” Southwest differentiates from its competitors by offering “short-haul, low cost, point-to-point service between midsize cities and secondary airports in large cities.” Southwest isn’t considered a full-service airline so they do not offer meals, assigned seats, interline baggage checking, or premium classes of service. With fast turnarounds at the gate, they’re also able to keep planes flying for longer hours than their rivals and provide frequent departures with fewer aircrafts. These various activities allow Southwest to compete fairly well with full-service airlines because a full-service airline, such as Continental airlines, could never be as convenient or as low cost. Ikea also focuses on customers who are searching for furniture at a low cost. Ikea does sacrifice service for cost, but this has been an advantage for them. Some of their advantages are that

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