Which type of strategy seeks to improve a firm's competitive position?

The cost-leadership strategy is designed specifically to improve a firm's competitive position by achieving the lowest operational costs in the industry. This approach enables the firm to either lower prices compared to competitors or maintain average prices while enjoying higher margins. By successfully minimizing costs, a company can attract price-sensitive customers without sacrificing profitability, thereby enhancing its market share and overall competitiveness.

In a cost-leadership strategy, the focus is on efficiency, scale economies, and tight cost control, which positions the firm favorably against its competitors. This allows the organization to capitalize on a broader customer base while building an advantageous competitive edge.

Other strategies such as defensive strategies may aim to protect a firm's market share but do not inherently focus on enhancing competitive positioning. Similarly, divestment strategies involve selling off parts of a business rather than directly improving competitiveness. Stability strategies prioritize maintaining current operations and market positions without aggressive growth or competitive maneuvers. Therefore, the cost-leadership approach stands out as a proactive strategy for improving a firm's competitive standing in the market.