The Theory of Business Strategy

The theory of business strategy involves planning how a company will compete successfully in its market. It focuses on analyzing the company's strengths, weaknesses, opportunities, and threats (SWOT analysis), setting clear goals, and choosing the best actions to achieve a competitive advantage. This includes decisions about products, customers, resources, and markets, with the aim of long-term growth and profitability. Effective strategy guides how a business differentiates itself from competitors and adapts to changes, ensuring it remains relevant and successful over time.