STRATEGY AND COMPETITIVE ADVANTAGE

 Strategy can be defined as a firm’s theory about how it can gain

competitive advantages (Barney & Hesterly, 2012).
 Each individual firm may have its own theory about how it can
best compete in the competitive marketplace. 
 The theory may be flawed, in which case the eventual strategy may
turn out to be ineffective, or the theory may turn out to be
highly explanatory, in which case the eventual strategy may just
succeed.

COMPETITIVE ADVANTAGE
 Refers to any edge that a firm has over its competition. 
 It is an edge that ideally will be felt by consumers, and it
answers the question “Why would I buy from this firm rather than
from the other firm?”

STRATEGY DOES NOT EXIST IN A VACUUM

 Strategy is not only about specific strategic actions, but also
the parameters, the policies, and the operating guidelines that
lead to the formulation of these specific actions in the first
place. 
 Strategies do not just happen in a vacuum and are dependent, if
not interdependent, on other parameters