What is the relationship between strategic management and competitive advantage?

Strategic management and competitive advantage are closely related concepts in business. Competitive advantage refers to the unique advantage an organization has over its competitors that allows it to produce goods or services at a lower cost or to provide superior value to its customers. Strategic management, on the other hand, is the process of aligning organizational goals and objectives with resources and actions.

Strategic management plays a crucial role in creating and sustaining competitive advantage. Organizations use strategic management to analyze their internal and external environment and make informed decisions about their future direction. They develop strategies to achieve their goals and allocate resources to support the implementation of those strategies.

One of the main goals of strategic management is to create and maintain competitive advantage. Organizations use strategic management to identify their unique strengths and opportunities in the market, and to develop strategies that leverage those strengths and opportunities. By doing so, organizations are better positioned to differentiate themselves from their competitors and provide superior value to their customers.