What does competitive strategy focus on?

• A. The actions and decisions a company takes to gain a competitive advantage in its industry, aiming to outperform rivals.
• B. The day-to-day management of internal processes without regard to competitors.
• C. The software techniques used to automate production.
• D. The legal framework governing market entry.

Answer: (A)

Competitive strategy is about how a company positions itself in its industry and uses its choices of activities to gain an edge over competitors. It focuses on where to compete and how to win there—deciding what activities to perform differently, what resources to invest in, and what value proposition to offer so the firm can outperform rivals. That idea is captured by describing actions and decisions aimed at gaining a competitive advantage in the industry. Other options describe internal operations, automation tools, or legal rules, which are relevant to efficiency or compliance but do not directly define how a company competes and succeeds against rivals.