Strategic management of SMEs Essay Example | Topics and Well Written Essays - 1250 words

Strategic counsel of SMEs - Essay modelThe choice of a competitive strategy helps a firm navigate the competitive environment that defines virtuosos business.This paper concerns with unraveling the sources of comparative advantage among firms. Comparative advantage regards having the ability to satisfy a grocery store in the best way than any other firm. In addition, the paper shall unravel how strategic management influences SMEs.Segmentation differentiation is a useful competitive strategy for an SME. Segmentation differentiation differs with differentiation in terms of product making. This is because segmentation differentiation concerns with dealing a specific market segment (Julien 2003, pp. 230). In this case, a business studies a market segment and determines different factors that define its existence. For instance, the business studies the general preferences and ineluctably of a given market. In addition, a SME studies the aggregate income levels of a market segment tow ards determining the expenditure and quality level demanded by a particular market segment. This strategy differs from the idea of approaching a market in its whole form because a firm makes the risk of targeting a single market. at that place are, however, several benefits of choosing a given market segment. To begin with, an SME has the high chances of exhausting the market. Once consumers are cheerful from particular services, they are highly likely to manifest customer loyalty even in cases whereby cutting competitors enter the market.Innovation occurs in tests of produced uniqueness that a firm has in a poll of competitors. It is significant to highlight that innovation is a traversing concept that may occur in every level of the provide chain. To begin with, it is essential to examine uniqueness in production. Innovation in production regards using the obtainable resources to produce that does not exist in a market. It also concerns with designing a production bear on that carets efficiency in terms of time and costs.