Strategy Building
Organizations need to navigate some directions and follow guides to achieve their goals and objectives. Otherwise, they may simply move towards wrong directions. How each organization sets a certain vision and mission and chooses activities to deliver value in the competitive environment is recognized as a strategy (Stenberg & Vu-Thi, n.d.). In other words, strategy is to determine the way through winning without losing the big picture (Keuning, Bossink, & Tjemkes, 2019). To set a competitive strategy, organizations choose to perform a different set of activities in comparison to their rivals aiming to deliver unique value. Different levels to formulate strategy include corporate strategy, business strategy, and functional strategy (Aldehayyat, Al Khattab, & Anchor, 2011).
To establish a strategy, it is initially required to have a deep insight into the current position of the company (Smith & Tan, 2020). Then, it is essential to gain insight into the competitive environment in which the business is operating in, its competitive position, its competitive advantages, and distinctive competencies (Porter, 1997). Gaining this insight is possible through the employment of tools such as SWOT analysis, scenario analysis, Pestel analysis, competitor analysis, Porter’s five forces, and gap analysis (Smith & Tan, 2020). Besides, organizations need to gain information from a broader perspective and identify external opportunities and threats that are likely to influence their business. Organizations that build their strategy by reliance on internal and external information are more likely to succeed and take advantage of the market before their rivals (Sharma, Kaur, & Syan, 2021).