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    #1

    trade-off?

    Hi,

    Porter argues that strategic positions are not sustainable if there are no trade-offs with other positions.


    Could I substitute "trade-off" with " alternative" or "replacement"?

  1. MikeNewYork's Avatar
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    #2

    Re: trade-off?

    Quote Originally Posted by Sepmre View Post
    Hi,

    Porter argues that strategic positions are not sustainable if there are no trade-offs with other positions.


    Could I substitute "trade-off" with " alternative" or "replacement"?
    Context?

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    #3

    Re: trade-off?

    Here is the more context:

    If a firm aims for a differentiation advantage, then the goal should be to design activities such that each activity adds to the differentiation advantage. On the other hand, if the goal is to be a low-cost provider, then costs of each activity should be kept to a minimum while still maintaining the threshold features that are required to stay in the market. Lack of consistency dilutes the positioning of a firm. The need for consistency emphasizes the requirement that strategy is not just about deciding which activities a firm should perform but also, and equally important, which activities not to perform. If a firm wants to be everything to everyone, then it runs the risk of not being able to do anything better than the competition and will end up being ‘stuck in the middle’. Why is that so? Porter argues that strategic positions are not sustainable if there are no trade-offs with other position.

  2. MikeNewYork's Avatar
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    #4

    Re: trade-off?

    Quote Originally Posted by Sepmre View Post
    Here is the more context:

    If a firm aims for a differentiation advantage, then the goal should be to design activities such that each activity adds to the differentiation advantage. On the other hand, if the goal is to be a low-cost provider, then costs of each activity should be kept to a minimum while still maintaining the threshold features that are required to stay in the market. Lack of consistency dilutes the positioning of a firm. The need for consistency emphasizes the requirement that strategy is not just about deciding which activities a firm should perform but also, and equally important, which activities not to perform. If a firm wants to be everything to everyone, then it runs the risk of not being able to do anything better than the competition and will end up being ‘stuck in the middle’. Why is that so? Porter argues that strategic positions are not sustainable if there are no trade-offs with other position.
    Porter's use of "trade-offs" there means that providing more of one thing must be balanced by providing less of something else. It is called "trade-off" because one is trading one thing for another. The last word in the final sentence should be "positions".

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