Strategy is all about securing and maintaining an edge over your competitors. This edge could be achieved through lower costs, unique features that set you apart, or a fresh approach that makes you stand out from the crowd. The process of strategic management involves a thorough analysis of both the external environment and the internal capabilities of a company to create and execute effective strategies.

When we talk about external analysis, we're looking at factors such as the level of competition, customer behavior, technological advancements, and legal considerations. On the other hand, internal analysis focuses on identifying the unique strengths or core competencies that set a company apart. If a company has resources that are valuable, rare, difficult to copy, and well-supported within the organization, it's likely to have a competitive advantage.

The responsibility of executing the strategy process falls on the leaders. They operate at various levels - corporate, business, and functional. This process includes planning, analyzing stakeholders, and managing the process as it unfolds. Leaders also set the vision, mission, and values to guide the company's direction.

Within any industry, performance can vary greatly between companies. This is often due to the existence of strategic groups. Companies can find themselves in either growing or declining stages of the industry life cycle, and this often depends on their ability to innovate and embrace entrepreneurship. Decisions at the corporate strategy level can involve vertical integration, diversification, forming alliances, or even mergers and acquisitions. For these strategies to be implemented effectively, it's crucial to align the company's structure, culture, and controls with the chosen strategy.

In today's fast-paced global business environment, strategic leaders must make decisions ethically and with the aim of creating value for shareholders, other stakeholders, and society at large. A deep understanding of customer needs and effective execution are at the heart of strategic management.