Knowra Business strategy Business strategy Business strategy is the set of long-term choices an organization makes about where to compete, how to create value, and how to allocate resources to pursue its objectives.
Competitive advantage : A firm's ability to create greater value than rivals or deliver comparable value at lower cost. Strategy seeks a defensible basis for outperforming competitors.
Porter's generic strategies : Michael Porter's framework of cost leadership, differentiation, and focus as broad competitive positions. The framework translates competitive intent into a small set of recognizable positions.
Blue Ocean Strategy : A strategy framework focused on creating new market space rather than competing directly in established markets. It contrasts with strategies centered on winning within existing industry boundaries.
Diversification : Expansion into new products, services, or industries beyond an organization's existing activities. It illustrates a high-stakes choice about where the organization will compete.
Organizational performance : The results an organization achieves against financial, operational, and other objectives. Performance indicates whether strategic choices are producing intended outcomes.
Value proposition : A company's explanation of the benefits it offers a defined group of customers and why they should choose it. It states the customer value the strategy is designed to deliver.
Value chain : The linked activities through which a firm designs, produces, markets, delivers, and supports its offerings. Activity choices determine whether a competitive position can be carried out coherently.
Resource-based view : A theory that explains sustained competitive advantage through valuable, rare, inimitable, and organized resources. It emphasizes internal resources where industry-positioning approaches often begin with external markets.
Mergers and acquisitions : The consolidation of companies through combinations or the purchase of one company by another. Acquisitions can rapidly change a firm's capabilities, market position, and scope.
Corporate governance : The systems and relationships through which an organization is directed, monitored, and held accountable. Governance shapes who sets strategy and how leaders are answerable for it.
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