Competitive advantage sustainable development strategies

Michael Porter, who developed the activity system concept described in Chapter 10, maintains that operating effectiveness, which he shortens to OE, will not lead to a sustainable competitive position. Porter believes many companies have lost sight of the need for strategies through their pursuit of operating improvement and cost reduction. He backs the view that operating efficiencies are easily transported across company boundaries. He asserts that activity systems, which are difficult to duplicate, are the root of competitive advantage. 

---