It has been put forward by Porter (1996) that strategy comprises of distinctive activities and involves opting for a set of activities, which offer an exceptional mix of value. In this manner, it is notable that strategic positioning demands creativity and insight, but just a unique position does not ensure sustainable advantage. In order to make strategic position sustainable it is necessary that there should trade-offs with other positions and this happens when activities are irreconcilable.
Trade-offs is beneficial for companies because they generate the requirement for choice and safeguard against repositioners and straddlers. In this manner, Porter (1996) has emphasised the article on organisational and provided recommendations for strategic positioning so that companies will be able to get competitive advantage in the cut-throat business market. The author has elucidated that choice of strategic positioning should be driven by the capability to seek for novel trade-offs. Moreover, it is essential for an organisation to constantly perk up its organisational effectiveness while reinforcing the balance amongst the business activities.
On the other hand, Prahalad and Hamel (1990) have mentioned that the actual source of benefit lies in the management’s ability to combine corporate wide technologies and production capabilities into competencies that authorize businesses to acclimatize speedily to changing business prospects. However, it is pertinent that core competence is also communication, participation and a deep assurance to working crossways organisational confines.