What is the main objective of strategic management in a competitive context?

The main objective of strategic management in a competitive context is to gain and sustain competitive advantages. This means that organizations focus on identifying and leveraging unique resources, capabilities, and market positions that set them apart from competitors. By creating a sustainable competitive advantage, a company can maintain its position over time, which is crucial in dynamic and often volatile markets.

Understanding competitive advantage involves looking at how a firm can outperform competitors through superior efficiency, quality, innovation, or customer responsiveness. The aim is not just to achieve a one-time advantage but to ensure that this advantage is durable, allowing the organization to thrive in the long term.

While maximizing short-term profits, increasing market share, and continuous innovation are important components of business strategy, they are often considered means to an end rather than the ultimate objective. Focusing solely on short-term profits can undermine long-term strategic positioning, and while increasing market share can be a critical component of competitive strategy, it does not ensure that a firm has a sustainable edge. Continuous innovation, although vital for keeping pace with competitors, is often a tactic used to secure competitive advantages rather than being the primary goal of strategic management. Therefore, the overarching aim of strategic management is to establish and maintain a robust competitive advantage, ensuring sustained success in the marketplace