Fundamentals of Management, 11/e

2 Competitive Strategy

How an organization will compete in its business(es).

• A small organization in only one line of business OR a large organization that has not diversified:

  Competitive strategy describes how it will compete in its primary or main market.

• Organizations in multiple businesses:

Each business will have its own competitive strategy.

• Those single businesses that are independent and formulate their own competitive strategies are often called strategic bts units (SBUs).

Important Role of Competitive Advantage

Developing an effective competitive strategy requires understanding competitive advantage, which is what sets an organization ...