Strategic Management: The Strategic Market Forces in the Organization
The importance of strategic management is how the market forces affect the competitive advantage of the organization:
It is to understand the strategic situation of the market forces such as the supplies, competitors, regulatory measures, economic and financial systems to position for the competitive advantage in the market.
Likewise, the significance of strategic management in business and industry has to understand the strategic situation of the market forces that defines the market demand in the service area. The supplies and materials are important to cushion the possible increase of the cost of production , therefore, there is a need to strategically directs the optimum way to reduce the product cost.
The competitors are very critical to alternatively define the organizational strengths and opportunities of the business for better market promotion as taking the competitive advantage in the market. What is good in the strategic management is to alter and enhance the possible organizational weakness and threats that need to sufficiently address to remain competitive in the market. The key point for competition is the clients’ satisfaction based on the product design and service-oriented system that deal with quality assurance.
The regulatory measures have been affected by the business community, it is important that the strategic management needs to address and conform along environmental compliance, safety measures, quality assurance, consumer friendly information, product testing,and business compliance. The political factors and regulatory measures are the universal transparency action of the organization as to the introduction of goods and services that may not simply in the compliance on the payment of business tax for the revenue administration and regulation of the government. It has to protect the interest of the consumers and clients not only better services and products but the health safety and the true content of the products and services being offered in the market place.
The economic and financial system have been the most critical component in the operation of the business as to support the cost of production to ensure the packaging of the desired product and service. The financial resources must efficiently and effectively manage and the ability to produce the desired capital through the linkages, collaboration, partnership with the commercial and financial institutions that may support the services being offered in the market. However, the strategic condition depends on how to respond a viable market.
It must be noted that the strategic market forces defend so much in the external environment that may affect the business and industry in capturing the market demand in the service area. The success of the business and industry is determined by the articulation and innovative strategy to attract the clients and customers on the products and services produce in the market. The managers should be articulate,dynamic, flexible and responsive to the environmental changes that may later on delight the customers and clients to support good and services in the service areas.