Strategic Management
an integrative management field that combines analysis, formulation, and implementation in the quest for competitive advantage
strategy
the set of goal-directed actions a firm takes to gain and sustain superior performance relative to competitors
Good Strategy
enables a firm to achieve superior performance and sustainable competitive advantage relative to its competitors
A Good Strategy - Strategic Management Process
1. A diagnosis of competitive challenge by analysis 2. Guiding policy to address the competitive challenge through strategy formulation3.A set of coherent actions to implement the firm's guiding policy through strategy implementation.
Competitive Advantage
achieving superior performance relative to other competitors in the same industry or the industry average
sustainable competitive advantage
when a firm outperforms competitors or industry average over a prolonged period of time
comparative disadvantage
when a firm underperforms industry rivals or industry averages
Competitive Parity
when two or more firms perform at the same level
Strategic Positioning
Staking out a unique position in an industry that allows the firm to provide value to customers while controlling costs.
Trade-offs
Alternatives that must be given up when one is chosen rather than another
Unique Strategic Position
A successful combination of strategic activities