The Influence of Market Context on Business Strategy, Competitor Imitation and Operational Effectiveness

Madalina Balau
The importance of strategic positioning, along with operational effectiveness, has long been presented as key for the success of the company. There are few studies that highlighted the way in which the market context affects these efforts of the company. The aim of this paper is to explore the influence of the market context on competitor imitation and its further implications on strategy. For this purpose, a literature review was conducted and major concepts were drawn from works of M. Porter,
more » ... while the influence of market context was found in research papers. Putting together these different perspectives on the company and the strategic choices it must make, the results of our analysis suggest that choosing a differentiation strategy and not imitating the reference competitors is a daring initiative, that involves the risk of standing out from the crowd. The implication of this finding is that imitation of the competitor is an easier solution for the company and it has an important attraction, due to the short term influence on increasing sales, while deterring innovation. The value of this paper consists in exploring the contextual influence of well-established concepts for company's management.