The book Understanding Michael Porter: The Essential Guide to Competition and Strategy opens up with an important statement- “Strategy explains how an organization, faced with competition, will achieve superior performance” (Magretta, 2012). There are many variables in this sentence that an entrepreneur and leader should frequently analyze. This includes understanding their venture well enough to create a solid strategy, knowing who the competition is, and what their desired outcome (superior performance) is to be. Each variable works together to create a framework that can equip a business with being well rounded. Furthermore, this enables a business to withstand both the industry it is in and difficulties that may arise.
Further along in the reading, the author goes on to give a clearer understanding of superior performance by identifying the main factors that contribute to it. First, entrepreneurs need to have the right mind-set. In order to be successful, especially among competition and in difficult times, is to assess value to the proper things. Rather than dominating an industry, one should be more concerned with creating products of value or service. This is sure to attract customers and likely to secure one’s place in the industry in a more meaningful way. Secondly, entrepreneurs need to have the proper analytics in place. This ensures that they can always be aware of their position within the industry and can properly adjust within their strategy to improve positioning.
As an entrepreneur it is imperative to have a clear vision on where one would like their company to be. In doing so, it makes it easier to create a strategy and goals that move the company towards this goal. It also makes it easier to analyze the industry and potential competitors to see how well a company aligns. This positioning also allows an entrepreneur to see opportunities where growth can occur or areas where the company can be strengthened in general.
Hyman, M. R., & Sierra, J. J. (2010). Marketing research kit for dummies. Hoboken, NJ: John Wiley & Sons Inc.
Magretta, J. (2012). Understanding Michael Porter: the essential guide to competition and strategy. Boston, Mass: Harvard Business Review Press.