ABSTRACT
This chapter defines the role of strategy and explores several constructs on how the firm can create a continued competitive advantage. A strategy is of no use if it does not deliver an increased advantage to the firm and its shareholders. Business strategy focuses on how firms compete through the integration of functional strategies for a distinct set of products and services that are intended for a specific group of consumers. In order to analyse competitive advantage, strategists start by dismantling a firm's primary and secondary activities, commonly referred to as the value chain. In advancing strategy development, many executives favour repeating a 100-day exercise and when the effectiveness of their primary strategies are recognised, they are then formalised and implemented into deliberate directives. There are various frameworks such as Six Sigma, Total Quality Management and the Balanced Scorecard that have been created to help with implementation.
