Strategy,
like all company asepcts, usually focuses on obtaining profits and
overcoming the capital profitability over the cost of opportunity.
In this case, there are two options to consider which can award greater
profits in terms of profitability. A company can appoint its efforts
to choose an appropriate sector or fight to avhieve a competitive
advantgae over its competitors.
We try
to achieve a higher profitability. This higher profitability depends
fundamentally on two factors:
The sector
we are in.
For example, stainless steel companies for years were systematically
more profitable that those of common steel.
The competitive
advantage of our company over the rest in the Sector. Certain
companies have been a lot more profitable than the rest of their
competitors for years.
We can
distinguish corporative strategy from business strategy:
Corporate
strategy defines the field of the company in terms of sectors and
markets. It selects the field in which the company competes.
Bussiness
strategy should worry about how the company is going to compete
in the selected market.
