The concept of strategic fit states that to maximize competitive advantage a firm must match its capabilities and resources to the opportunities available in the external environment.
2. Prepared By
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Manu Melwin Joy
Assistant Professor
Ilahia School of Management Studies
Kerala, India.
Phone – 9744551114
Mail – manu_melwinjoy@yahoo.com
3. The concept of Strategy
• The concept of strategy is
based on three subsidiary
concepts:
– Competitive advantage.
– Distinctive capabilities and
– Strategic fit.
4. Strategic fit
• The concept of strategic fit
states that to maximize
competitive advantage a firm
must match its capabilities
and resources to the
opportunities available in the
external environment.
5. Strategic fit
• As Hofer and Schendel (1986)
conclude: ‘A critical aspect of
top management’s work
today involves matching
organizational competences
with the opportunities and
risks created by
environmental change in
ways that will be both
effective and efficient over
the time such resources will
be deployed.’
