Question

Porter defined strategy as activities that support the creation of a unique and valuable position. Mintzberg also claimed that strategy could be understood as activities focused on seeking an advantageous position, whether or not directly competitive. Isn’t strategy all about beating or outwitting competitors in the market [Strategy as plan or ploy?] so that the company can earn above-average profitability? What is your opinion?

Answer 1

Yes, strategy is all about beating or outwitting competitors in the market, so that the company can earn above-average profitability:

1. Strategic management is a process through which the vision, mission and goal of an organization is set and defined. Once formulated then organizations continuously thrives to achieve the same through set policies and procedures.
2. It involves all aspects of management like planning, organizing, controlling and implementing of the strategies.
3. In a larger perspective strategic choices are used as ploy, so that the competitors don’t expect the outcome from the organization in near future.
4. One of the primary factor of framing strategy is to increase profitability on year on year basis and one way to increase revenue is to beat competition and hence strategies are framed carefully keeping in the mind the major competitors in the market.