Selecting Competitive Tactics: Try a Strategy Map
Sloan Management Review, (1987) Vol. 28 No. 3, pp. 5-15
Posted: 27 May 2016
Date Written: 1987
Strategic planning requires identifying the relevant performance measures of an industry as well as developing tools to understand the relationships among them. One such tool is a ''strategy map'' that describes how performance measures, strategy tactics, and competitors' performance are related. The position of a business and those of its competitors are mapped on a graph to provide a measure of relative competitive standing. This approach also lets managers simulate the impact of different strategies on performance. A map for an actual industry is presented. The strategy map illustrates the relationships among performance measures and tactical variables, in contrast to other current research that focuses on what the measures or variables are, but not on how they fit together to create the competitive environment. By integrating these relationships into a single map, the forces at play in the competitive environment and how these forces affect performance can be seen.
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