Monday 12 November 2018

Importance of strategies in strategic management

Strategic management, the topic of this book is the unify management field that integrates analysis, creation and implementation (e.g. analysis, formation and implementation) to achieve competitive advantage. Some key ideas about strategic and competitive advantages (competitive advantages) and components of structure See also was the basis for a strategic management study.

Why is that strategy important?

The desire to be always good with our competition is done in almost every aspect of our lives. Universities compete in getting students and professors. The company's new trend is in terms of financial and human capital competitiveness. Long-term companies compete for future growth, and employees compete for salary increases and promotions.

Spokes writers at universities compete for grant research and compete for graduate and undergraduate students to secure jobs and potential students competing for entry into doctoral programs and scholarships.

On each competitive situation, the winners are those who have a good strategy. Generally, strategy is a series of actions and is consciously done by the company to achieve its goals. In summary, the strategy need to achieve the best performance.

A company that creates and enforces strategies that leads to better performance than other competitors on the same industry or industry, has competitive advantages (competitive advantage). For example, Google has a competitive advantage compare to Microsoft, Yahoo and other competitors.

A company that can run better for its competitors or the industry's average for some time, has a sustainable competitive advantage (sustainable competitive advantage). It seems that Google has a sustainable competitive advantage as it can continue its rival for a long time. However, the past performance does not guarantee future performance.

Strategic management in business

There is no perfect measure on our performance in such a competitive advantage in the world of sports. In this case, we can compare the benchmark performance with the performance of other companies in the same industry or industry average. If a company is less superior to its competitors or industry, then there is a competitive disadvantage in the company. Two or more companies have perform at the same level, then the companies are call competitive equities.

Other companies can easily copy the source of corporate competitive advantage, then corporate profits are short-term. However, if empirical benefits or other companies are imitate, then the company can retain its superiority for a longer time.

Sustainable competitive advantage of strategic management

Base on the enterprise's targets, specifically for the purpose of achieving sustainable competitive advantages, these actions take action. The company has a competitive advantage that provides superior value to our customers at the competitive price level or lower price level.

Profitability and market share are the result of superior value creation. The case is the result of the services of the intend customers or services seeking to earn money.

The subject matter here is that the strategy of creating the highest value. The cost of making it A big difference in the value and cost creation. The financial contribution made to the company is much larger, hence the opportunity to gain competitive advantage also increase.

This strategy is not a zero-sum game - not always in cases where one side and another loses. Many strategic success is achieve when a company or person cooperates with each other. To make a Win-Win view, sometimes even the direct competitors work the same way. When competitors work together to achieve strategic objectives, it is call co-option.

To get a competitive edge

The organization should provide competitors and services that are more valuable than competition organizations, or things that are similar to competitor and services at a lower cost.

Hence, the essence of strategy is different from the opponent and unique nature. Administrators meet this difference by strategic positioning, putting unique positions in the industry that provide value to consumers while controlling costs.

To determine what to do, the strategy is to do more, it is relevant to decide what to do. Due to limit supply of that resource. The manager should take into account the choice of business strategies to gain competitive advantage.

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