Editorials: 2025 Vol: 24 Issue: 2
Citation Information: Collins, A, M. (2025). Business strategy: foundations, approaches, and future directions. Academy of Strategic Management Journal, 24(2), 1-2.
Business strategy serves as the blueprint that guides an organization toward achieving long-term goals, sustaining competitive advantage, and navigating dynamic market environments. This article discusses the foundational concepts of business strategy, explores major strategic approaches—including competitive, corporate, and functional strategies—and highlights the role of innovation, technology, and strategic agility in modern organizations. The paper concludes by emphasizing the importance of continuous strategic evaluation in an increasingly complex global landscape.
Keywords: Business Strategy, Competitive Advantage, Strategic Management, Corporate Strategy, Innovation, Strategic Planning, Organizational Performance.
Business strategy is a central element of organizational success, defining how firms position themselves in the market, utilize their resources, and respond to external changes. In today’s globalized and highly competitive environment Allan, B. A., Batz-Barbarich, C., Sterling, H. M., & Tay, L. (2019)., firms must adopt well-crafted strategies that enable them to stand out and achieve sustainable growth.
At its core, business strategy involves making deliberate choices—about target markets, value propositions, resource allocation, and operational priorities that shape the overall direction of the business. Classical thinkers such as Michael Porter emphasized competitive forces and differentiation, whereas recent perspectives highlight agility Ateeq, A., Alzoraiki, M., Milhem, M., & Al-Absy, M. (2023)., digital transformation, and innovation as essential components of strategy.
The formulation of effective business strategy begins with an analysis of the external environment (such as competitors, regulatory changes, and consumer trends) and the internal capabilities of the organization Benedetti, I., Laureti, T., & Regoli, A. (2021).. Tools like SWOT, PESTLE, and Porter’s Five Forces help managers assess the landscape and build actionable strategies. Once formulated, successful strategies require effective implementation through leadership commitment, organizational culture, and performance measurement systems.
In today’s dynamic business environment, characterized by intensified competition, rapid technological advancements, and unpredictable economic conditions Berlew, D. E., & Hall, D. T. (1966)., organizations must formulate strategies that not only respond to external pressures but also leverage internal strengths. Traditional strategy models, such as SWOT analysis and Porter’s Five Forces, remain valuable for environmental scanning, while modern frameworks emphasize agility, adaptability, and innovation.
Business strategy is no longer limited to management alone; it integrates technology, sustainability, customer experience, and human capital development. Organizations that embrace holistic strategies are better equipped to navigate complexities, scale operations, and create long-lasting value Bhatti, K. K., & Qureshi, T. M. (2007).
Business strategy remains a vital driver of organizational success, enabling firms to create value, withstand competition, and adapt to rapidly evolving markets. With constant changes driven by technology, globalization, and shifting consumer expectations, organizations must stay agile and forward-thinking. The most successful companies are those that continuously evaluate their strategic assumptions, embrace innovation, and align their resources with long-term ambitions. Ultimately, a well-designed and well-executed business strategy provides the foundation for sustainable growth and competitive advantage.
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Bhatti, K. K., & Qureshi, T. M. (2007). Impact of employee participation on job satisfaction, employee commitment and employee productivity. International review of business research papers, 3(2), 54-68.