Crafting a sound competitive strategy is fundamental to running a business. This statement is simple to write but a complex undertaking in practice. Competitive strategy is the mechanism used by organizations to create value for customers and gain an advantage over competitors. The organization gains a competitive advantage through activities that encompass designing, producing, marketing and supporting products2etc. The business strategies organize these activities to create a synergistic effect that maximize value for customers. “The essence of strategy is choosing to perform activities differently than rivals do” M. Porter1 The crux of the problem are the assumptions entrenched in the process used to gain a competitive advantage in a crowded marketplace. Recycling assumptions known to have worked in the past Customer feedback, industry research, managements’ intuition and experience Organizations need a system to test, abandoned or change assumptions. The inherent unpredictability of the business landscape requires a fresh look at the needs of customers and competitors. Blindi...
a. Basically, corporation strategy demonstrates a corporation’s overall direction in the light of its general mindset toward growth and the management of its businesses and product portfolios. There are three crucial categories, which are stability, growth, and retrenchment, that involve within corporation strategy. Additionally, business strategy often occurs at the business unit or product level, and it highlights the improvement of the competitive position of a company’s products and service in the particular market segment served by the business unit. Competitive and cooperative strategies are two main categories that match within business strategy. Furthermore, functional strategy is the method that through a functional area to
23), a strategy is competing differently using a set of actions to perform better over rivals and achieve greater profitability. It is about choosing to be different and making the correct choices to provide direction and guidance to employees and the company on what to do and what not to do.
Business strategy is the means by which firm’s plans to achieve its goals and objectives. It can also be termed as organization long-term planning. The strategy covers periods between 3-5 years and sometimes longer. Businesses use two major types of strategy, general or generic and competitive strategies. The overall strategy involves strategies of growth, globalization and retrenchment. The competitive advantage includes low pricing, product and customer differentiation. We will look at the business strategy used by Marks and Spenser (Cole, 1997). The company is a British multinational located at Westminster London and specializes in clothes and luxurious food products.
Competitive strategy is a long-term action plan that is devised to help a company gains the competitive advantages over its competitors. There are Four Porter’s Competitive Strategy which including cost leadership, differentiation, cost-focused and focused-differentiation.
Thompson, A. A., Strickland, A. J., & Gamble, J. E. (2008). Crafting & executing strategy: The quest for competitive advantage (16th ed.). New York: McGraw-Hill Irwin.
Porter, M. E., 1999. The Five Forces that Shape Competitive Strategy. Harvard business review, p. 80.
Thompson, A.A., Strickland, A.J., & Gamble, J. E. (2010). Crafting and executing strategy: The quest for competitive advantage: Concepts and cases: 2009 custom edition (17th ed.). New York: McGraw-Hill-Irwin
John G. S., 2008: Strategically thinking about the subject of Strategy [e-journal] 9(4) p.2 Available through:
There are a variety of challenges that firms may face when attempting to be the best in their specified industry. Economic and political challenges can make it difficult for companies to maintain a competitive advantage. In addition to maintaining a competitive advantage, some firms also find difficulty in keeping its branding alive and by attracting customers as their strategies, products, and management change over the course of time. Industries such as the automotive industry, healthcare industry, retail industry, and many more experience a variety of challenges based on their competition. Firms must create successful strategies in order to maintain competitive with their competition and in order to gain advantages in their industry (Hitt, 2013).
Competitive strategy means being different. According to Porter heart of strategy is choosing to perform activities different than rivals. Strategy is the creation of a unique and valuable position, involving a different set of activities. Strategic positions arise from three sources, which are not equally exclusive and often overlap. The first Variety-based positioning based on choices of products or services variations rather th...
Porter, M. E. (2008). The five competitive forces that shape strategy. Harvard business review, 25-40.
Thompson, A.A., Peteraf, M.A., Gamble, J.E., Strickland (2013). Crafting and executing strategy: The quest for competitive advantage concepts and cases (pp. 178-209). McGraw-Hill Irwin.
...ur customers and employees happy, profits and growth will follow. In addition, Enterprise should always be aware of the tough competition that is out there and fight against it with innovative ideas and outstanding customer service. As Andy Taylor said, “We own the high ground in this business, and we aren’t going to give it up.”
Strategy: a plan in place to maintain and establish competitive advantages compared with competitors and boost relationship with clients (Daniell, 2004). Business strategy has to be adaptable to the changing environment, including internal and external environment of the enterprise. Enterprise strategies must be consistent with the resources of the business and on the basis of close association with the remaining 6 factors in the model (Mckinsey, 2015). An organization can