The Global economy, warm competition allows the company to think for future survival. The competition is changed and there are small number of companies have monopoly, technology almost remove the barriers of geographical distance among the nations with the birth of Internet and adopting E-commerce platform for electronic business.
The Companies create competitive advantage for long term survival in the complex environment. The Competitive advantage can be gain by resources which are valuable, rare, can’t imitated, not have substitutes. But keep in mind it’s not the case if any resource is rare it remains rare forever competitors can find the sources to match resources.
The firm has to track the changes and keep updating the resources time to time in order to maintain the competitive advantage. 3M produce number of products every year because there competitive advantage is employee’s innovation. Amazon.com competitive advantage is there huge database contains million of books. Southwest airline perform low cost operation due to efficient processes. Cisco provides solutions for different networks and communication with dealers, resellers’ results in huge profits.
Strategic Management is all about creating, maintaining, and improving the competitive advantage through the process of formulating, implementing and evaluating the decisions.
To dominate the future company must do assessment of internal and external environment, defend threats and exploit opportunities, manage products and services by dropping the bad one’s and improving the best one’s, adopt the strategy which is achievable and workable result in long term success for the company, implement strategies in suitable way, match the actual performance with the plan and take corrective action if needed to make strategy more workable.
Poetry written by me can conclude topic in a better way:
The people who can see far
Adopt the strategy for a war
Mission helps them decide
Reason of existence and sight
Visionary thinking is mandatory
To increase growth of the tree
Objective can organize the game
Inform the army what to gain
Strategy runs the decided game
Plan can work and produce the fame
Get together for successful plan
Check and balance is the part of the game
Strategic management is a long term plan
You can get, what you claim!