StrategyStrategic planning means thinking, taking initiatives and implementing them further to achieve better performance for the company. The strategic plan can vary for different types of businesses and generally involves setting goals, assigning actions to achieve the goals, and deploying resources to execute the actions. Role of Strategy Strategy provides the structure for developing plans and implementing them further. Strategies should be understood by managers and team members, so they will provide more effective decisions for the organization. If this is done and enforced, appeals can be applied where they are most required. For example, if a company needs to upgrade its product's software, it needs to focus on: If there is greater competitive rivalry, there will be greater pressure on price, profit and strategy. Competitive rivalry can be high due to the fact that similar companies operating in a single business might have the same strategies to market their product. Threat of new competitors: The competitive threat does not only come from existing competitors in the market but also from those who represent potential new entrants into the market. The few reasons for the barriers are as follows: - high initial investment required to enter the company, high switching costs for consumers, difficulty in accessing raw materials. Threat of Substitutes: Threat of substitutes means that the substitute product is the one found in another industry but they are used to fulfill the same need fulfilled by the substitute product. The few factors that influence the threat of substitutes are as follows: - brand loyalty, relative prices and so on. Bargaining Power of Buyers: Bargaining power of buyers means that buyers have greater power to influence the price in the industry that will. become an important element to consider