The Role of the Competitive Context in the Business Strategy-Formulation Process

Donatella Depperu and Luca Gnan

International Studies of Management & Organization, 2006, vol. 36, issue 3, 110-130

Abstract: This paper deals with the relationships that exist between the competitive context of the firm and the way it formulates its strategy at the business level. A research project surveyed a sample of strategic business areas from medium and large-sized firms in Italy. The main results are that two environmental factors are particularly relevant: changes in the needs of the firm's customers and demand growth rate. Moreover, it transpired that even larger firms do not use sophisticated tools to formulate their competitive strategy.

Date: 2006
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DOI: 10.2753/IMO0020-8825360306

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