Originally posted by Bisto
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For the purposes of this conversation, let me quote Porter. If you have a business or work at any organization at all, it can only be of help
The full article is behind a pay wall, so if you haven't read Porter's ideas, you could start with this SlideShare presentation, which more or less outlines the contents of said article.
The whole talk about trade-offs, creating fit between a company's activities, and generating a sustainable competitive advantage, in this case means that a company COULD choose to focus on "Christian cakes" (or any other niche, mind you) if they see it has the potential to serve the needs of a specific subset of customers, for example (this would be even more pronounced if they style themselves as selling "Christian products, period"). They COULD choose to drive their activities to that end, and have continual training processses through which the bakers improve their cooking AND their theology to create better Christian cakes (better in both the "Christian" and the "cakes" aspects), IF they see this as potentially generating a strategic advantage -- in other words, as long as this gives them an edge over a regular bakery trying to make Christian cakes AND over the Christian cookie shop trying to make Christian cakes, because neither of them has this company's specific business processes. It's hard to envision in this particular example because cakes aren't your typical high-added-value product or service, but you get the idea.
In the same way, I obviously respect the strategic position of Victoria's Secret, and boy, has it worked. They perform better offering a product aimed at half the population than if they had a generic brand aimed at all of it (it is my understanding there was a time when they did sell male underwear), so, can they be forced to change it for 'leaving us out'?
The full article is behind a pay wall, so if you haven't read Porter's ideas, you could start with this SlideShare presentation, which more or less outlines the contents of said article.
The whole talk about trade-offs, creating fit between a company's activities, and generating a sustainable competitive advantage, in this case means that a company COULD choose to focus on "Christian cakes" (or any other niche, mind you) if they see it has the potential to serve the needs of a specific subset of customers, for example (this would be even more pronounced if they style themselves as selling "Christian products, period"). They COULD choose to drive their activities to that end, and have continual training processses through which the bakers improve their cooking AND their theology to create better Christian cakes (better in both the "Christian" and the "cakes" aspects), IF they see this as potentially generating a strategic advantage -- in other words, as long as this gives them an edge over a regular bakery trying to make Christian cakes AND over the Christian cookie shop trying to make Christian cakes, because neither of them has this company's specific business processes. It's hard to envision in this particular example because cakes aren't your typical high-added-value product or service, but you get the idea.
In the same way, I obviously respect the strategic position of Victoria's Secret, and boy, has it worked. They perform better offering a product aimed at half the population than if they had a generic brand aimed at all of it (it is my understanding there was a time when they did sell male underwear), so, can they be forced to change it for 'leaving us out'?
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