The Role of the Competitive Context in the Business Strategy-Formulation Process

Donatella Depperu, Luca Gnan
2006 International Studies of Management and Organization  
This paper deals with the relationships that exist between the competitive context of the firm and the way it formulates its strategy at the business level. A research project surveyed a sample of strategic business areas from medium and large-sized firms in Italy. The main results are that two environmental factors are particularly relevant: changes in the needs of the firm's customers and demand growth rate. Moreover, it transpired that even larger firms do not use sophisticated tools to
more » ... late their competitive strategy. The characteristics of the competitive context are considered by some authors 1 to be the factor that most strongly influences the type of strategy a company pursues or can formulate, and the level of profitability. 2 It is also accepted 110 Donatella Depperu is a professor of business administration at
doi:10.2753/imo0020-8825360306 fatcat:k53ls4w7ind4da6affeweg6rjq