Economics Of Strategy -

According to Michael Porter’s research , profitability is driven by two main factors:

Strategy is not a one-time plan but a continuous pattern of actions. By grounding these actions in economic theory, leaders can replace guesswork with a systematic framework for long-term growth. Economics of Strategy

Economic strategy defines a firm's success by the "wedge" it creates between two points: According to Michael Porter’s research , profitability is

The goal of strategy is to widen this wedge more effectively than competitors. If you simply create value but can't capture it (by pricing above cost), you have a charity, not a business. If you capture value without creating it, your competitive advantage is a mirage that will soon vanish. 2. Industry Structure vs. Firm Positioning According to Michael Porter’s research