Please read the text below and provide analytical feedback on the based on how question was answered. Please use appropropriate grammar and APA format and on a collegiate level when responding to this task.
Question:
What is strategic management and why is it important?
Answer/Response:
Strategic management is a continuous process, that focuses on competitive advantage (Management Study Guide, 2019, para. 2). Through a combination of formal tools and creative thinking, firms utilize the strategic management process to examine the relationships between leadership, management, firms, and industries to determine why competitive advantage exists and how it can be attained for the firm employing strategic management (The Saylor Foundation, 2014, p. 3).
This is important because competitive advantage is how firms establish themselves in the market. If strategic management is key to determining competitive advantage, then it is absolutely imperative that firms utilize this process to succeed. For example, Apple utilized the strategic management process in creating the iPhone, transforming the company from one struggling to find market share in the personal computer space, to becoming a trillion dollar company worth more than the majority of countries on Earth (Tibken, 2018, para. 1). Even a cursory examination shows that strategic planning was key to this shift. Steve Jobs understood the performance of Apple and then compared it to other firms in the market, then determined through environmental and external scanning that there was an opening in the market for a phone that was more than a basic phone or a business productivity device (The Saylor Foundation, 2014, p. 29). Jobs and Apple then formulated a strategy for unveiling and launching the device, and then implemented that strategy in 2007 with the launch of the original iPhone (Carey, 2019, para. 2).
This marked the end of the initial strategic management cycle, but as it is a continuous process, Apple must be constantly evaluating and re-evaluating to ensure competitive advantage (The Saylor Foundation, 2014, p. 28). This process can be seen in subsequent iPhone models such as the iPhone 3G, which skipped the number 2 so that 3G coverage could be highlighted in the offering (Carey, 2019, para. 1). Apple’s dominance in the smartphone market is a prime example of just how important strategic management is.
References
Carey, C. (2019, October 8). The Evolution of the iPhone: Every Model from 2007–2019. Retrieved from https://www.iphonelife.com/content/evolution-iphone-every-model-2007-2016.
Management Study Guide. (2019). Strategic Management Process – Meaning, Steps and Components. Retrieved from com/strategic-management-process.htm.”>https://www.managementstudyguide.com/strategic-management-process.htm.
The Saylor Foundation. (2014). Chapter 1 Mastering Strategy [PDF file]. The Saylor Academy. Retrieved from https://learn.umuc.edu/d2l/le/content/415018/viewContent/16071944/View
Tibken, S. (2018, August 3). Apple becomes a trillion-dollar company. Retrieved from https://www.cnet.com/news/apple-becomes-a-trillion-dollar-company/.
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