defined by the specific market positioning, comeptative moves, and business approaches that form management's answer to "What's our plan for running the company and producing good results?"

-managerial commitment to undertake one set of actions to increase company performance

1) appeal ot buyers in ways that seperate a company apart from its rivals

2) Stake out a market position that is not crowded with strong competitors.

Choosing what rivals don't or can't do

A creative, distintive strategy that sets the company apart from its rivals and yields a successful competative advantage.

1) low-cost provider

2) differentiating features: quality, widers product selection, added performance, value-added services, styling, tech superiority, good value

3) niche market

4) developing expertise and resource strengths (hard to immitate)

When its sustainable- attract buyers to have a long-lasting reason to purchase.

Competative Advantage is linked to profitability, and is a focus in strategy making

1) Diversify company revenues and earnings by entering new businesses

2) Strengthen comp. capabilities and correct comp. weaknesses

3) managing R&D, production, sales and marketing, finance, etc.

4) Strengthen competiveness via strategic alliances and collaborative partnerships

5) Stengthen market standing and comp. by acquiring or merging w/ other companies

6) capture emerging market opportunities and defend against threats to company's bus. prospects

7) enter new geo. or product markets, or exit existing ones

8) Respon to changing market & comp. conditions or other external factors

9) gain sales and market share via: lower prices, + performance, + style, + quality or customer service, +product selection, ets

-fresh strategic maneuvers from rivals

-unexpected customer requirements and expectation shift

-fast technological developments

-new market opportunities

-changing political or economic climate

-unanticipated happenings in the surrounding environment

-abandoning obsolete or ineffective strategy elements...

...and then adapt to the strategy as new circumstances unfold = combination of proactive & reactive elements

a blueprint/roadmap for delivering a valuable product or service to customers in a manner that will generate revenues to cover costs and yield an attractive profit.

sets forth an economic logic for making money in a particular business, given the company's current strategy

critical elements:

1) customer value proposition: satisfy needs at a price that will be perceived as a good value 

2) its profit proposition (profit formula): means of generating revenues, and the principal resources and operating systems that will be employed to create and deliver the inteded customer value

1. well-conceived opportunistic strategy

2. outinnovate and outmaneuver rivals

3. secure sustainable competative rivals

4. use this market edge to acheive superior financial performance

managements' functions: 

a) you need a well conceived company strategy 

b) execute that strategy competenly

fits external situation and company's internal resource strengths and competitive capabilities, builds competitive advantage, and boosts company performance.