The vehicular peculiarities which firms configure to create needs and drive at service – product – satisfaction in other to attain profit goals.
Is when a firm successfully introduces a bold, complex and detached process which is implementable. This processes must give the company an advantage in other words, over other competitors. The firm there-by crates value which ensures a higher market share. Are those management techniques of investment which a company introduces with a commitment to enable it to achieve strategic competitiveness.
When a firm implements successfully the strategy that creates a value over its competitors, competitive advantage will exist. If this advantage sustains, therefore, the strategy may have been difficult to duplicate. It shows that other competitors would not have the capacity to finance. In this instance, it is said to be expensive and costly to challenge the strategy.
ABOVE AVERAGE RETURNS:
Are profit resulting from a competitive advantage position? It also means returns in excess of what an investor would earn or expect to earn. Especially from other investments with a similar amount of risk.
Challenges of Strategic Management:
This is so tough because each firm tries to duplicate what makes other competitors unique. Then to be ahead of others, every skill is invested into management art to stay ahead. This explains the reason why the goals of achieving strategic competitiveness and earning above-average returns are challenging. Large Firms try as much as possible to sustain the challenge or leadership.
What is Hypercompetition:
Among industries, firms or companies, there is the “ pep-and-seek” attitude of business organizations. This is to know and study what goes on within competing firms. Hypercompetition is a term that is used to capture the realities of the new competitive atmosphere or Landscape.
What are the factors responsible for Hyercompetition:
These are two major factors playing out in the Hypercompetition environment:
- The emergence of the world as a global village in terms of enterprise rightly called the global economy and;
- The increase in demand as a result of an increase in population.
a. What is Global Economy: When goods, services, people skills and ideas move freely across boundaries global economy is enhanced.
b. Strategic Flexibility: Is a set of competencies available to a firm. It enables it to respond to various demands and opportunities occasioned in the competitive environment/business environment.