Strategic Management: A Competitive Advantage Approach, Concepts and Cases, 16/e (2024)

FAQs

What is the concept of competitive advantage in strategic management? ›

Competitive advantage is the favorable position an organization seeks to be more profitable than its rivals. To gain and maintain a competitive advantage, an organization must demonstrate a greater comparative or differential value than its competitors and convey that information to its desired target market.

Strategic management involves: developing a strategic mission or vision, setting objectives, developing strategies to achieve the objectives, implementing the strategies, and evaluating the results.

There are three main types of sustainable competitive advantage: differentiation, cost leadership, and focus advantage.

The six factors of competitive advantage are selection, quality, service, turnaround, price, and speed.

The basic concept of strategic management consists of a continuous process of planning, monitoring, analyzing, and assessing everything necessary for an organization to meet its goals and objectives. Simply put, it is a management technique to prepare the organization for the unforeseeable future.

Strategic management is the process of setting goals, procedures, and objectives in order to make a company or organization more competitive. Typically, strategic management looks at effectively deploying staff and resources to achieve these goals.

Strategic management involves planning, analyzing and implementing a business strategy. Strategic management is most effective if you can step back far enough and say "all things are possible." The essence of strategic management is matching business resources to market opportunities.

There are seven core elements that if considered will contribute to the organization's project decision-making process. The seven elements (7 C's) are: customers, competitors, capabilities, cost, channels, communication, and coordination.

Implement Your Strategy

Successful strategy implementation is critical to the success of the business venture. This is the action stage of the strategic management process. If the overall strategy does not work with the business' current structure, a new structure should be installed at the beginning of this stage.

What is the core of making a plan? ›

Answer: The core of making a plan in class 12 involves setting clear objectives, gathering relevant information, exploring different options, selecting the best strategy, creating a detailed action plan, allocating necessary resources, monitoring progress, and adjusting the plan as needed.

A competitive advantage is anything that gives a company an edge over its competitors, helping it attract more customers and grow its market share. A competitive advantage can take three primary forms: Cost advantage–producing a product or providing a service at a lower cost than competitors.

Michael Porter proposed the theory of competitive advantage in 1985. The competitive advantage theory suggests that states and businesses should pursue policies that create high-quality goods to sell at high prices in the market. Porter emphasizes productivity growth as the focus of national strategies.