Challenges in Creating Competitive Strategies-Comparasion between Production and Service Activities

Lidija Stefanovska .

Abstract


Setting the strategic direction in a broader sense is determining the image and character the organization wishes to develop over time.  It is largely determined by environmental factors that impose by themselves limiting conditions, in terms of capital flows, investment in training and development, lack of resources or forced savings due to bad economic conditions (Popovski, 2009). It is in these terms, top management makes key decisions on which often depends the success / failure of the organization and its sustainable competitiveness in the market.

The main objective of the paper is to present the survey results, which are related to the choice of strategy of the organization to achieve greater competitiveness in the market. Based on the studied world literature, the strategies are classified into four categories: strategies towards external environment, strategies aimed at internal environment, strategies for organizational change and innovation strategies. The selection of organizations for the research is made on the basis of their relation in terms of internal capacity, market competitiveness, features of business and size of organizations. The research challenge is to draw a parallel between organizations from manufacturing and service industries, primarily in the way of defining the strategies, strategic direction and treating competition as a phenomenon.

Keywords


strategy, competitiveness, strategic direction.

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