COMPETITIVE

STRATEGY
 COMPETITIVE STRATEGY
• define a firm’s position in relation to its
competitors in a given market.
• These strategies enable a firm to develop its
market position while being able to create a
sustainable competitive advantage.
 COMPETITIVE ADVANTAGE
• is defined as the above-average profits a firm is
able to generate from its business operations
when compared to its competition or
competitive set.
• A competitive set refers to all of the firms in a
given market/segment that compete directly
against one another.
WHAT IS THE BASIS OF A GOOD
STRATEGY?
• According to Porter (1996), a good strategy
has to do with the uniqueness the firm is
able to create through a course of action,
and “the essence of strategy is choosing to
perform activities differently than rival do”.
WHAT IS THE BASIS OF A GOOD
STRATEGY?
• Strategy is not action perse; neither is
it a mission, a vision statement, nor a
goal. Strategy enables a firm to
become unique in terms of the position
it occupies in the market.
WHAT IS THE BASIS OF A GOOD
STRATEGY?
• A good strategy should be accompanied by
a clear definition of the industry and the
products and services. In fact, strategy
enables a firm to make the right decisions
regarding the choices pertaining to the
course of action.