chapter  5
39 Pages

SSM Competitive Level Strategies

ByJean Garner Stead, W. Edward Stead

This chapter focuses on the various strategies a firm can adopt to achieve a competitive advantage and profitability in an industry or product/market segment. It explores how strategic managers can utilize these two coevolving data sets of external and internal information to build various strategies to gain a competitive advantage within target market segments. The chapter examines how to choose the appropriate strategies dependent on the firm's competitive position and type of market in which its strategic managers have chosen to compete. Strategic managers must make critical decisions regarding how to strategically position their firms in their chosen market segments in ways that provide them with cost and/or differentiation competitive advantages. They must choose some combination of cost-leadership, product differentiation, and focus strategies, and they must choose to implement them preemptively, as second movers, or as late movers. The effectiveness of Sustainable Strategic Management is dependent on the market type and relative market position of the firm.