20 Jun Competitive Approach, Competitive Scope, and Decision Models

Adam

Introduction

A strategic approach to any business strategy requires countless hours of planning and data gathering to understand what the best options are for succeeding at a given market capitalization. A competitive approach rise on having a structural component already created in order to impact the market in a way that is not seen as hyper aggressive but will fit in with the rest of the other competitors so that they are not a target for future misunderstandings within the business. This paper will touch on the process of deciding what approach fits best in a given environment, determining the scope of effect that it will have and how accost management strategy can be effective.

Process: Deciding on a Competitive Approach

            There are multitude of competitive strategy options that a business can undertake, including differentiation strategy, capabilities and competencies, predatory pricing, cost focus strategy and more. Aligning the company's values with how the function of future activities will come to fruition relies on whether or not a company will choose to be more aggressive or attempt to run with the rest of the competing business opponents (Mattera et al., 2021). Effective strategies work differently between whether or not the main objective is to sell a tangible product, provide a service, sell an intangible product or any other form of generating revenue which creates a predicament for a small business and how novel businesses can thrive through their novel status, showing how the importance of effective business strategy aligns with success and higher revenue (Leppänen et al., 2023). So much of the strategy will rely on all of the different components that go into what the business is attempting to achieve. The subtext will come from the external markets and how popular a demand there is on the particular good or service that is being provided. In some cases a lateral move from one product to another that at the time is performing the same, but this could shift in time and build a better revenue stream overall.

Strategic Thinking: Determining Competitive Scope

            Determining the competitive scope of a business once again relies on the market but will also determine how the geographical scale of the business operates and in what capacity it is effective. A multinational approach towards understanding the geographical scope will display how production can be conducted in what part of the world, what that will entail, the cost analysis, All of these things tied together to show both geographical scope and distribution capabilities (Kaur, 2023).

            Geographic Scope

            The geographical approach of defining and understanding of business, Information is imperative when understanding a competitive intelligence approach because trying to determine what geographical scope the business will cover will apply to their own understanding of the geographical area but also have a view of their own weaknesses in terms of entrepreneurial ship in that particular area and how not all opportunities that present themselves are necessarily good (Olayemi et al., 2022). Defining the capabilities of how distribution functions and employment opportunities in the area come down to simple analytics, but whether or not the staff will except positions in the new business or an existing business that has spread a new branch to a different city or country, heavily relies on their willingness to pay fair wages and analyze similar positions in the area. The geographical scope has so many compounding elements that deciding on which competitive strategy to conduct is always going to be a challenge.

            Production / Distribution Scope

            Production and distribution require financial backing, a strong employee base, and most importantly a market for which the consumption of these products is highly prevalent in the area in terms of geographical scope and market appeal. Much of these components again require a rather significant amount of data collection and analytics, but in this circumstance there is the positive element of cost leadership strategy that will allow for a slower start to production and business, but usually a more accurate summary of internal and external forces from the geographic scope of the business and where it can be best understood (Kaur, 2023).

Decision Model

            For this case, the cost leadership strategy seems to be one of the most effective in this case. Showing the relevance of the cost measures behind producing and effectively maintaining a business especially in this scope of high production and initial costs for setting up a new company turn at the magnitude that so many investors and stakeholders would require on an annual basis (Ashrafi and Zareravasan, 2022). Having the business analytical strategy in place to define roles and understand where the market sits in terms of fluctuations and volatility gives the option for growth or withdrawal depending on the market.

Conclusion

Business strategy is constantly evolving in a way that many analysts struggled to keep up with full time because of a constantly shifting landscape of new factors and approaches towards creating a business model that will be sustainable for the life of it potentially revolutionary business. Although many will end up in bankruptcy, the few that start and succeed through the correct business strategy implementation, analytical team, financial backing and many other elements will be a bright future for them.

Annotated Bibliography

Ashrafi, A., & Zareravasan, A. (2022). An ambidextrous approach on the business analytics-competitive advantage relationship: Exploring the moderating role of business analytics strategy. Technological Forecasting and Social Change, 179. https://doi.org/10.1016/j.techfore.2022.121665

Summary of Key Points

            This article displays the importance of an analytical approach towards the competitive advantage element of perfecting a business model in a way that satisfies the business strategy but also reflects on management when these major demonstrations of The shift in power from moving into one or more new markets. The most important factor is to understand the moderating role of business analytics strategy and how the analysis can provide key insights on which markets to move in on and which markets to avoid based on a number of factors including cost analysis, income per capita, and many other strategic infrastructure elements that the business will rely on especially since it is brand new in most cases and allows for that competitive advantage to be seen effectively utilized even under stressful circumstances. Defining the characteristics of social change and forecasting where the market will be in the next six months, or more, is a valuable asset to have as tool for building a stronger foundation of business strategy.

Evaluation of the Quality of the Publication

            Technological forecasting and social change is a publication that works with a number of business approaches to understand the analytical side of understanding the world in a scope of function that technology and social structures hold in society.

Evaluation of the Quality of the Author(s)

Ashrafi and Zareravasan are both accomplished academics, while the former is a student the latter is a professor of corporate economics and administration in the Czech Republic. Both of them have published more than once since this initial article published in 2022 and they are both knowledgeable in the field of business analytics and corporate structure that would be required for understanding the nuances of business strategy for the purposes of this discussion

Where this fits into the discussion.

This fits into the discussion by providing context towards the analytical side of cost leadership. Having a strategy that can be defined in a way that leads to a stronger analysis of the relationship between corporate market analysis and the active fluctuation of social needs and structures that will inevitably affect the business. There are a number of complexities involved with starting a business and maintaining a business, virtually all of which can be dissected by data analytics and their continuity in terms of the overall longevity of the business can be displayed here as tangible evidence towards starting or removing business from a particular area or climate.

Kaur, V. (2022). Multinational orchestration: a meta-theoretical approach toward competitive advantage. Critical Perspectives on International Business, 19(2), 206–233.  https://doi.org/10.1108/cpoib-11-2021-0090 Links to an external site.

Summary of Key Points

            This research study is conducted for the purpose of understanding the meta-analysis of competitive advantage to be of a nature that allows for the best outcomes to be seen under the critical evaluation of understanding contemporary concepts that aligned with today's culture of conducting research and building a business that can be profitable long term. This is a combination quantitative and qualitative study based on the data gathered from globally competitive business structures and what key competitive elements can be obtained through the observation of these multinational groups. This is where the complication of fragmentation of information is relevant because of the structuring in corporate business strategy and how each business will have a different take on what constitutes as emergent or how different elements of business react to external function.

Evaluation of the Quality of the Publication

            The publication is titled critical perspectives on international business, having been in online publisher for nearly two decades, there have been a number of critical perspective pieces written in the annals of time that pertain to the barriers of international and domestic business structure anomalies that can occur due to strong or a lacking team or a number of external resources that cannot be controlled due to one reason or another.

Evaluation of the Quality of the Author(s)

The author is a multiple published writer on the subject of business strategy and works in the department of management and information systems at Kent State University as professor in Ohio. Having published other articles in the past, the quality seems to be correct in terms of writing structure and experience with the subject.

Where this fits into the discussion

            This article fits into this discussion post by showing the elements of geographical integration on the premise of understanding the sub themes of where strategy will be most effective against a market that is not as receptive to fluctuations and other elements as others could be. Finding the right corporate structure requires a path to success that can be generated by creating a platform suitable for The desired entry into a market will always be complicated but can be achieved through proper planning and reactionary steps.

References

Ashrafi, A., & Zareravasan, A. (2022). An ambidextrous approach on the business analytics-competitive advantage relationship: Exploring the moderating role of business analytics strategy. Technological Forecasting and Social Change, 179. https://doi.org/10.1016/j.techfore.2022.121665

Leppänen, P., George, G., & Alexy, O. (2023). When Do Novel Business Models Lead to High Performance? A Configurational Approach to Value Drivers, Competitive Strategy, and Firm Environment. The Academy of Management Journal., 66(1), 164–194.  https://doi.org/10.5465/amj.2020.0969 Links to an external site.

Mattera, M., Ruiz-Morales, C. A., Gava, L., & Soto, F. (2021). Sustainable business models to create sustainable competitive advantages: strategic approach to overcoming COVID-19 crisis and improve financial performance. Competitiveness Review, 32(3), 455–474.  https://doi.org/10.1108/cr-03-2021-0035 Links to an external site.

Kaur, V. (2022). Multinational orchestration: a meta-theoretical approach toward competitive advantage. Critical Perspectives on International Business, 19(2), 206–233.  https://doi.org/10.1108/cpoib-11-2021-0090 Links to an external site.

Olayemi, O. M., Yacob, H., & Olayemi, K. J. (2022). Information driven entrepreneurship: A competitive intelligence approach. Journal of Business & Finance Librarianship, 27(3), 159–175.  https://doi.org/10.1080/08963568.2022.2053351 Links to an external site.