Strategic management is the set of decisions that determine the performance of an organisation. Strategic management includes environmental scanning, which comprises external and internal analysis. It will be formulated in a strategy formulation which can be strategic or long-range planning. After the formulation of strategy, strategy implementation, evaluation, and control follows. A significant part of strategic management study comprises emphasizing the monitoring and evaluation of opportunities and threats from both external and internal elements. It helps in defining the strengths and weaknesses of the organisation.
Competitive strategies are narrower in scope than Business strategies. Competitive Strategies deals exclusively with a company’s business plans to compete successfully:
- Specific efforts to satisfy the customers
- Counter manoeuvres of rivals through offensive and Defensive Tactics
- Responses to prevailing market conditions
- Initiatives to strengthen its market position
Competitive Business Strategies
A business strategy is nothing but a set of plans, actions, and goals that conveys how a business will compete and perform in a particular market with a product or number of products or services.
- Low-Price Strategy
- Differentiation Strategy
- Combination Strategy
It needs to be defined by the Target segment. Is the targeted segment Cost based or Value-based? That drives the Price or Differentiation strategy.
- We can describe strategies in the diagonal as competitive.
- Garden of Eden (High relative differentiation, Low relative cost) is the preferred zone.
- Death Valley (High relative cost and low relative differentiation) is not selected.
- In small groups of 3, discuss examples of products you believe are in the Death Valley/ Garden of Eden.
Five types of Competitive Strategies