The relationship between competitive and corporate strategy u5s2p12

Competitive - "how the firm competes within a particular industry or market" (Grant 2002, p24)
Corporate - "define the scope of the firm in terms of the industries and markets in which it competes" (grant again)

So, competitive is "how" and corporate is "what".



Corporate strategy sets "the basic direction for strategic actions" whereas competitive sets how that direction is followed.

Corporate deals with the interrelationships between business units, and therefore defines the scope of the organisation.

Four dimensions of scope -

Segment scope - the variety of products or services produced and buyers served
Vertical scope - the extent to which activities are performed in house.
Geographic scope - the range of regions, countries or groups of countries in which a firm competes
Industry scope - the ranges of related industries in which an org competes with a co-ordinated strategy

The greater the scope the greater the potential for competitive advantage.