For strategy folks, this article is almost a classic. What can I say about such a well-cited paper? Well, not much. I had a chance to revisit this paper and came to appreciate his thoughtful insights once again.
One thing stands out among many insightful points from Porter: rather than simply focusing on the development of valuable resources or capabilities to create competitive advantage, firms should first think about why they need those particular resources in their strategy and how they plan to organize those resources along the carefully chose firm activities. Back to organizing! This is a simple, maybe obvious to many, but powerful insight.
Strategy is not just about picking "right" target customers or identifying and developing as many resources as possible, but about organizing different activities in a unique way to make customers happy in a different way. That's how you maximize your own added value to the game.
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