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Identify and explain why corporate strategy may not be necessary any longer.

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Identify and explain why corporate strategy may not be necessary any longer.

Corporate strategy

A corporate strategy can be defined as the approach a company takes to attain a competitive advantage and thrive successfully. It involves analyzing the markets in terms of available resources, risks, losses, and profits. The three primary corporate strategies include stability, renewal, and growth (expansion).

Answer to the question

A corporate strategy may not be necessary any longer because of the uncertainty of the market trends.

Market trends keep on changing and may sometimes not be predictable; hence analyzing the market conditions may be ineffective. The corporate strategies are most efficient and effective when the market trends are predictable. Today, some products may be selling at their highest level, and tomorrow the sales decline rapidly and cause the company more losses than profits. In such a case, the use of corporate strategy is not effective and may lead to the development of other policies, which may be hard to adapt and expensive to implement. Corporate strategies may be useful when used to analyze the market and develop goals for the company.

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