The most important elements when working to improve an organizations competitive advantage is having a strong understanding of their value chain. (David, David, & David, 2019). This includes offering a dynamic product line with a strong focus and differentiation, searching for increased profits through new revenue models, cost reductions, technology implementation, manufacturing efficiencies, understand and secure a market or customer base and (Zwilling, 2010).

Through strategic planning a company can focus on these elements. Step one includes gathering information needed for managers to create strategies. By performing a SWOT analysis, the company can identify internal and external strengths and weaknesses, then by weighing and rating each factor, managers can create both an EFE and an IFE matrices they can find niches or opportunities to gain or strengthen their position compared to their competition (David et al., 2019). Using a CPM, a company can see how they compare to the industry and their leading competitors regarding critical success factors. The second step is utilizing the information gathered in step one matching it to 5 tools (SWOT, SPACE, BCG, IE, and Grand matrices) to generate alternative strategies. Finally, step 3 or the decision stage, QSPM is used to rank alternative strategies to assist in establishing the attractiveness of each strategy. This enables managers to select the importance of each recommendation based upon quantitative and qualitative information to best create value for all stakeholders (David et al., 2019).

Do you agree. Please explain.