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Competitive Strategy Author: Instructor: Institution

This document discusses competitive strategy and its importance for strategic management planning. It defines competitive advantage as an organization having valuable, rare, hard to imitate and organized resources that provide superiority over competitors. Competitive advantage can also come from innovative capabilities like new products, processes or business models. Strategic management planning is important as it facilitates strategic decision making, stimulates entrepreneurial thinking, and strengthens commitment to strategy. It involves different levels of planning like product, business unit, shared resources, and corporate levels to identify trends and opportunities.

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Eli Koech
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24 views

Competitive Strategy Author: Instructor: Institution

This document discusses competitive strategy and its importance for strategic management planning. It defines competitive advantage as an organization having valuable, rare, hard to imitate and organized resources that provide superiority over competitors. Competitive advantage can also come from innovative capabilities like new products, processes or business models. Strategic management planning is important as it facilitates strategic decision making, stimulates entrepreneurial thinking, and strengthens commitment to strategy. It involves different levels of planning like product, business unit, shared resources, and corporate levels to identify trends and opportunities.

Uploaded by

Eli Koech
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Running Head: Competitive Strategy

COMPETITIVE STRATEGY
Author:
Instructor:
Institution:

Competitive Strategy

What Does This Mean to You?


It means that an organization itself can develop a competitive advantage without depending on
the external factors. An organization that has valuable, rare, hard to imitate and organized
resources has an advantage over its competitors due to superiority over such resources. Such
attributes of the resources include; brand equity, intellectual property, culture, know-how and
reputation. An organization with unique competences has the ability to perform tasks
successfully and is a combination of related skills, knowledge, capabilities and knowledge which
other organizations find it hard to replicate (Barney, 2010). Another one is through innovative
capabilities where innovative products, processes or new business models provide strong
competitive advantage for the organization.
Why is This an Important Concept to Strategic Management Planning?

Strategic management is the process that defines the organizations mission, scans the
environment to ascertain opportunities, and then combines this assessment with an evaluation of
the organizations strengths and weaknesses to identify an utilizable niche in which the
organization will have a competitive advantage. Strategic management planning facilitates
strategic decision making about customer groups and resources, stimulates entrepreneurial
thinking and strengthens managers commitment to the companys strategy (Bateman, 2006). The
management planning levels include; product or marketing planning, business-unit planning,
shared resource planning to achieve economies of scale, shared-concern planning and corporatelevel planning for identifying technical and market trends.

Competitive Strategy

REFERENCES
Barney, B.J. (2010). Looking Inside for Comp.Adv. Academy of Management Executive, Vol.
9(4), pp.49-61.
Bateman Thomas S., Zeithaml Carl P.: Management. Irwin, Boston 2006

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