What is the goal of strategic management?

The goal of strategic management is fundamentally linked to the concepts of competitive advantage and its sustainability over time. Strategic management entails formulating and implementing the major goals and initiatives taken by a company's top management on behalf of the owners, based on consideration of resources and an assessment of the internal and external environments in which the organization competes.

Achieving competitive advantage means developing attributes or capabilities that allow a company to outperform its rivals. However, simply achieving competitive advantage is not sufficient in a dynamic marketplace. Companies must also consider how to maintain that advantage against competitors who are constantly innovating and striving to catch up. As a result, the most comprehensive goal of strategic management encompasses both the attainment and the sustenance of competitive advantage.

This holistic approach ensures that organizations not only position themselves to excel in the marketplace but also develop strategies to sustain their market position over the long term. In essence, the combination of achieving and maintaining competitive advantage captures the ongoing nature of strategic management, which is crucial for long-term success and resilience in a competitive landscape.