BUSINESS STRATEGIES AND COMPETITIVE ADVANTAGE.

SUPERVISED BY MR. SADIQ

GROUP MEMBERS
AHMED MAZHER NIZAR
ABDULRHMAN SALEM AL-DYWAILAH
MEYAD YEHYA MEYAD

FACULTY OF BUSINESS AND FINANCE

INTERNATIONAL UNIVERSITY OF TECHNOLOGY TWINTECH

2024-2025
 CHAPTER ONE: INTRODUCTION

1.1 Research Background

Businesses operate in a highly competitive and dynamic environment where success is contingent upon
effective business strategies and the ability to gain a competitive advantage. In today's globalized and
rapidly changing market, organizations must understand the importance of developing robust strategies
to differentiate themselves from competitors and achieve long-term success.

Competitive advantage is a central concept in strategic management. It refers to the unique position
that a company establishes by offering superior value to customers compared to its competitors (Porter,
1985). A competitive advantage allows a firm to outperform its rivals, increase market share, and
achieve higher profitability.

To achieve competitive advantage, organizations must develop and implement effective business
strategies. Business strategies encompass a set of actions and decisions undertaken by an organization
to achieve its goals and gain a competitive edge in the market. These strategies involve a complex
chain of activities, starting from ideation to commercialization, and require various resources, skills,
and tools (Giessen, 2018).

One influential perspective on competitive advantage is the resource-based view (RBV). This
theoretical framework emphasizes the importance of firm-specific resources and capabilities in
creating and sustaining a competitive advantage (Wernerfelt, 1984). Resources can include physical
assets, financial capital, intellectual property, and human capital. Capabilities, on the other hand, refer
to the organization's ability to effectively deploy and utilize its resources. The possession of valuable
resources and capabilities that are difficult for competitors to imitate or substitute allows a firm to
outperform its rivals (Barney, 1991).

Core competencies are unique capabilities and knowledge within an organization that provide a
competitive advantage. These competencies are the collective learning and expertise of an organization
and can span various functions and departments. By focusing on core competencies, companies can
differentiate themselves in the market and gain a competitive edge. Core competencies can be
leveraged across different products and markets, enabling the company to achieve synergies and
economies of scale (Prahalad and Hamel, 1990).

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The concept of generic strategies includes cost leadership, differentiation, and focus. Cost leadership
strategy involves offering products or services at a lower cost than competitors while maintaining
acceptable levels of quality. This strategy aims to gain a competitive advantage through operational
efficiency, economies of scale, and cost control. Differentiation strategy, on the other hand, focuses
on providing unique features or attributes that set a company's offerings apart from competitors. This
differentiation can be achieved through product innovation, superior customer service, or brand image.
The focus strategy involves targeting specific market segments or niches and tailoring the company's
products or services to meet their specific needs. By focusing on a narrow market segment, companies
can better understand customer preferences and gain a competitive advantage (Porter,1996).

In today's rapidly changing business landscape, the dynamic capabilities perspective has gained
prominence. This perspective emphasizes a firm's ability to adapt, innovate, and learn in response to
changing market conditions. It recognizes that competitive advantage is not static but requires
continuous strategic renewal. Companies must actively seek opportunities, innovate their products and
processes, and adapt to evolving customer preferences and market trends. Dynamic capabilities enable
organizations to be agile and responsive, giving them a competitive edge in a fast-paced environment
(Teece et al., 1997).

Another crucial aspect of gaining a competitive advantage is a firm's absorptive capacity. Absorptive
capacity refers to a company's ability to identify, assimilate, and apply external knowledge. In today's
knowledge-intensive economy, organizations cannot rely solely on internal resources and capabilities.
They must actively seek and leverage external knowledge, whether from suppliers, customers, industry
partners, or research institutions. Absorptive capacity plays a critical role in gaining a competitive
advantage through innovation and learning from the external environment. By effectively leveraging
external knowledge and insights, organizations can enhance their internal capabilities and stay ahead
of the competition (Dierickx and Cool, 1989).

In addition, the concept of blue ocean strategy suggests that companies can create uncontested market
spaces by developing innovative business strategies. Instead of competing in existing markets, they
focus on creating new demand and value for customers. This approach allows organizations to break
away from the competition and establish a unique position in the market. Blue ocean strategy
encourages companies to shift their focus from competing within a crowded market to creating new
market spaces where competition is limited (Kim and Mauborgne, 2005).

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In conclusion, effective business strategies and the ability to gain a competitive advantage are essential
for organizations to thrive in the competitive business landscape. By developing unique capabilities,
leveraging resources, and implementing innovative strategies, companies can differentiate themselves,
meet customer needs, and achieve long-term success. The resource-based view, dynamic capabilities
perspective, and concepts like core competencies, generic strategies, absorptive capacity, and blue
ocean strategy provide valuable frameworks for organizations to achieve a competitive advantage.
These frameworks emphasize the importance of understanding internal and external factors, adapting
to change, and continuously innovating.

1.2 Problem Statement

Despite the importance of developing effective business strategies and gaining a competitive
advantage, many organizations struggle to achieve sustainable success in today's competitive business
landscape. The rapid pace of change, globalization, and technological advancements pose significant
challenges for businesses in differentiating themselves from competitors and capturing market share
(Researchers, 2024).

One key problem is the lack of understanding and implementation of robust business strategies.
Organizations often fail to develop comprehensive strategies that align with their goals and leverage
their unique capabilities (Giessen, 2018). This leads to a lack of differentiation in the market and an
inability to effectively compete with rivals.

Another problem is the difficulty in identifying and leveraging core competencies. Core competencies,
which are unique capabilities and knowledge within an organization, play a crucial role in gaining a
competitive advantage (Prahalad and Hamel, 1990). However, many organizations struggle to identify
their core competencies and effectively leverage them across different products and markets.

Furthermore, the dynamic nature of the business environment poses challenges in adapting and
innovating to stay ahead of the competition. Organizations must possess dynamic capabilities to adapt,
innovate, and learn in response to changing market conditions (Teece et al., 1997). However, many
organizations lack the agility and responsiveness required to continuously renew their strategies and
operations.

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Additionally, the effective utilization of external knowledge and resources is critical in gaining a
competitive advantage. Absorptive capacity, which refers to a company's ability to identify, assimilate,
and apply external knowledge, plays a vital role in innovation and staying ahead of the competition
(Dierickx and Cool, 1989). However, many organizations struggle to effectively leverage external
knowledge and insights.

Lastly, the concept of blue ocean strategy provides a new perspective on creating uncontested market
spaces. Companies that focus on creating new demand and value for customers, rather than competing
within crowded markets, can establish a unique position (Kim and Mauborgne, 2005). However,
organizations often face challenges in identifying and implementing blue ocean strategies.

Addressing these problems is crucial for organizations to achieve long-term success and gain a
competitive advantage in today's business landscape. By understanding the challenges and barriers that
organizations face in developing effective business strategies and differentiating themselves, this
research aims to provide insights and recommendations to overcome these obstacles and enhance
competitive advantage (Researchers, 2024).

1.3 The Dependent Variable (DV) and The Independent Variable (IV)
The dependent variable (DV) in this research is the level of competitive advantage achieved by
organizations. Competitive advantage refers to the unique position that a company establishes by
offering superior value to customers compared to its competitors. It encompasses factors such as
market share, profitability, and outperforming rivals.

The independent variable (IV) in this research is the implementation of effective business strategies.
Business strategies encompass a set of actions and decisions undertaken by an organization to achieve
its goals and gain a competitive edge in the market. The effectiveness of these strategies, including
factors such as alignment with organizational goals, utilization of resources, and adaptation to
changing market conditions, will be examined as the independent variable.

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1.4 The Scope of the Research
The scope of this research focuses on understanding the challenges and barriers organizations face in
developing and implementing effective business strategies to gain a competitive advantage. It explores
various frameworks and concepts, such as the resource-based view, dynamic capabilities perspective,
core competencies, generic strategies, absorptive capacity, and blue ocean strategy, to provide insights
into enhancing competitive advantage.

The research will examine both theoretical perspectives and practical applications, drawing on case
studies, industry analysis, and empirical data. The scope encompasses a wide range of industries and
organizations, acknowledging the diverse nature of the business landscape. The research will
contribute to the existing body of knowledge by providing recommendations and insights for
organizations to overcome challenges and improve their competitive advantage.

1.5 Significance of the Research:

The significance of this research lies in its potential to provide valuable insights and recommendations
for organizations seeking to enhance their competitive advantage through effective business strategies.
By exploring various frameworks and concepts such as the resource-based view, dynamic capabilities
perspective, core competencies, generic strategies, absorptive capacity, and blue ocean strategy, the
research aims to address the challenges and barriers that organizations face in developing and
implementing these strategies. The findings of this research can contribute to the existing body of
knowledge in strategic management and provide practical guidance for organizations to differentiate
themselves, capture market share, and achieve sustainable success in the competitive business
landscape.

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1.6 Research Questions:
1. What are the key challenges and barriers that organizations face in developing and implementing
effective business strategies to gain a competitive advantage?

2. How can organizations identify and leverage their core competencies to achieve a sustainable
competitive advantage?

3. What are the critical factors that contribute to the effectiveness of business strategies in enhancing
competitive advantage?

4. How can organizations effectively adapt, innovate, and learn in response to changing market
conditions to maintain a competitive edge?

1.7 Research Objectives:

1. To identify and analyze the primary challenges and barriers that organizations encounter when
developing and implementing effective business strategies to gain a competitive advantage.

2. To explore strategies and approaches for identifying and leveraging core competencies within
organizations to achieve a sustainable competitive advantage.

3. To examine the critical factors that influence the effectiveness of business strategies in enhancing
competitive advantage, including alignment with organizational goals, resource utilization, and
adaptation to changing market conditions.

4. To provide practical insights and recommendations for organizations on how to develop dynamic
capabilities that enable them to adapt, innovate, and learn in response to changing market conditions
and maintain a competitive edge.

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1.8 RESEARCH ORGANIZATION
CHAPTER ONE: discuss on the introduction of the study and the major variables of this study. It
defines the problem statement, develops the question and set the objectives of this research, it discusses
the significance and limitations, as well as define key terms of the study.
CHAPTER TWO: discuss the literature review of the major variables of this study. In addition, it
develops the theoretical framework and the hypotheses to answer the identified the questions of this
research.
CHAPTER THREE: describes research methodology, type, purpose and the type of investigation of
this study as well. Moreover, it describes the data collection methods and data analysis program used
in this research.
CHAPTER FOUR: describes the data screening sample profile, descriptive statistic, correction
analysis, regression analysis and the hypotheses testing.
CHAPTER FIVE: describe the conclusion, recommendation and future research.

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 CHAPTER TWO: LITERATURE REVIEW
2.1 Introduction
The introduction of the literature review chapter plays a crucial role in setting the stage for the research
by providing an overview of the research topic, its significance, and the purpose of the literature
review. It aims to establish the context and rationale for examining business strategies and competitive
advantage as a critical area of study in the field of business.

Numerous previous studies and research articles have highlighted the importance of understanding and
leveraging competitive advantage for organizations to achieve long-term success and superior
performance in today's dynamic and highly competitive business environment.
For example, Porter's seminal work on competitive strategy (Porter, 1980) has been influential in
shaping the field of strategic management. Porter argued that businesses need to adopt a clear and well-
defined strategy to create and sustain a competitive advantage. His framework, known as Porter's Five
Forces, provides a systematic analysis of the industry structure and the competitive forces that shape
the profitability of firms.

Moreover, studies such as those by Barney (1991) have emphasized the significance of sustainable
competitive advantage. Barney's resource-based view suggests that firms can achieve a sustainable
competitive advantage by leveraging unique and valuable resources and capabilities that are difficult
for competitors to imitate. This perspective has led to further research on the role of intangible assets,
knowledge-based resources, and dynamic capabilities in developing and maintaining competitive
advantage.

In addition, research by Prahalad and Hamel (1990) introduced the concept of core competencies,
which are the unique strengths and capabilities that distinguish a firm from its competitors. Core
competencies can serve as a foundation for developing competitive advantage by enabling
organizations to deliver superior value to customers and adapt to changing market conditions.
Furthermore, numerous empirical studies have investigated the relationship between business
strategies, competitive advantage, and firm performance. For example, a study by Hitt et al. (2002)
found a positive association between the adoption of differentiation strategies and firm performance,
indicating that firms that successfully differentiate themselves from competitors tend to achieve better
financial outcomes.

These prior studies collectively emphasize the significance of understanding and effectively
implementing business strategies to gain a competitive advantage in the marketplace. By conducting
a comprehensive literature review, this research aims to build upon and contribute to this existing body
of knowledge by examining the relationship between various business strategies and their impact on
competitive advantage.

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2.2 Background Information about Competitive Advantage
In this section, we provide an overview of competitive advantage, its definition, and its significance in
the field of business. Competitive advantage refers to the unique strengths and capabilities that allow
a business to outperform its competitors and achieve superior performance. It is a fundamental concept
in strategic management and plays a crucial role in the long-term success and sustainability of
organizations.

Competitive advantage can arise from various factors, including product differentiation, cost
leadership, innovation, customer service, and brand reputation. These factors enable companies to
create value for customers, differentiate themselves from competitors, and secure a strong market
position.

The concept of competitive advantage has been extensively explored and analyzed in the literature.
Notable researchers and scholars have contributed to our understanding of competitive advantage and
its implications for business strategy.

The resource-based view (RBV) of the firm, which emphasizes the role of firm-specific resources and
capabilities in achieving competitive advantage. According to the RBV, firms with valuable, rare, and
difficult-to-imitate resources and capabilities are more likely to gain a sustainable competitive
advantage. These resources can include tangible assets such as physical infrastructure, intellectual
property, organizational knowledge, and human capital (Barney ,1991).

Building on the RBV, the concept of "VRIO" framework, which stands for Value, Rarity, Imitability,
and Organization. The VRIO framework provides a systematic approach to assessing the competitive
potential of firm resources and capabilities. It suggests that for a resource or capability to contribute to
a sustained competitive advantage, it must possess value, be rare among competitors, be difficult to
imitate, and be appropriately organized and exploited within the firm (Wernerfelt, 1984).

Another influential perspective on competitive advantage is the dynamic capabilities approach. Firms
need to develop and leverage dynamic capabilities to adapt and respond to changing market conditions.
Dynamic capabilities involve a firm's ability to sense and seize new opportunities, reconfigure existing
resources and capabilities, and continuously innovate. By developing dynamic capabilities, firms can
enhance their competitive advantage in dynamic and uncertain business environments (Teece et al.
,1997).

Moreover, the notion of customer-focused competitive advantage has gained considerable attention in
recent years. Scholars such as (Day and Wensley ,1988) and (Slater and Narver ,1994) have
emphasized the importance of understanding customers' needs, preferences, and behaviors to gain a
competitive advantage. Customer-focused strategies involve delivering superior value to customers
through personalized experiences, excellent customer service, and deep customer insights.

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In summary, competitive advantage is a fundamental concept in strategic management. It encompasses
the unique strengths and capabilities that enable organizations to outperform their competitors. The
resource-based view, VRIO framework, dynamic capabilities approach, and customer-focused
strategies are some of the key perspectives that have contributed to our understanding of competitive
advantage.

2.2.1 Dependent Variable (DV) Definition

In this section, we focus on defining the dependent variable (DV) in the context of studying business
strategies and competitive advantage. The dependent variable represents the outcome or the variable
of interest that researchers seek to understand, explain, or predict in a study. In the context of this
literature review, the dependent variable is the measure or indicator that reflects competitive
advantage.

The selection and operationalization of the dependent variable are crucial steps in research, as they
determine the metrics used to assess and quantify competitive advantage. Several measures and
indicators have been employed in the literature to capture competitive advantage from different
perspectives.

1. Financial Performance: One common approach is to use financial performance indicators, such as
return on investment (ROI), return on assets (ROA), return on equity (ROE), or market share, as
measures of competitive advantage. Financial performance metrics provide insights into the
organization's profitability, efficiency, and market position compared to its competitors.

2. Market-based Measures: Market-based measures focus on market outcomes and competitive

positioning. These measures can include market share, customer loyalty, brand equity, customer
satisfaction, or customer retention rates. Market-based measures capture the organization's success in
attracting and retaining customers, which is a key aspect of competitive advantage.

3. Resource-based Measures: Another approach is to use resource-based measures to assess

competitive advantage. These measures examine the firm's unique resources, capabilities, and core
competencies, which are considered sources of competitive advantage. Examples of resource-based
measures include patents, intellectual property, technological capabilities, or employee expertise.

4. Innovation-based Measures: Given the importance of innovation in gaining a competitive

advantage, innovation-based measures are also used in some studies. These measures can include the
number of new products or services introduced, research and development (R&D) investment, or the
number of patents filed. Innovation-based measures capture the organization's ability to develop and
introduce new and improved offerings to the market.

It is important to note that the choice of dependent variable should align with the research objectives,
the theoretical framework, and the specific context of the study. Researchers need to carefully consider
which measure(s) best capture the essence of competitive advantage in their particular research setting.

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Furthermore, it is common to use multiple measures or indicators of competitive advantage to provide
a more comprehensive assessment. Researchers may combine financial performance measures with
market-based measures or resource-based measures to gain a holistic understanding of competitive
advantage.

In summary, the dependent variable in the context of studying business strategies and competitive
advantage represents the measure or indicator used to assess and quantify competitive advantage.
Financial performance measures, market-based measures, resource-based measures, and innovation-
based measures are commonly employed to capture different dimensions of competitive advantage.
Researchers should select the most appropriate measures based on their research objectives and the
specific context of the study.

2.2.2 Importance Measurements from Previous Studies of Competitive Advantage:

Measuring competitive advantage is a critical aspect of research in understanding organizational
performance, strategic decision-making, and long-term success. Previous studies have emphasized the
significance of quantifying and assessing competitive advantage to gain insights into its impact on
financial performance, market positioning, and sustainability. The following expanded notes from
researchers provide further support for the importance of measuring competitive advantage:

1. Quantifying competitive advantage enables benchmarking and comparisons:

Measuring competitive advantage allows for standardized comparisons across firms and industries,
providing valuable insights for strategic decision-making (Grant, 1991; Peteraf, 1993). By using
standardized measures, researchers and practitioners can compare and analyze competitive advantage
across different organizations, sectors, or geographical regions. This enables benchmarking against
industry peers and identifying relative strengths and weaknesses, which can inform strategic choices
and resource allocation decisions.

2. Measuring competitive advantage helps identify its sources:

Quantifying competitive advantage aids in identifying the key drivers that contribute to sustained
performance (Barney, 1991; Wernerfelt, 1984). It allows researchers and organizations to pinpoint the
specific factors that underpin their competitive advantage, such as unique resources, capabilities, or
market positioning. By measuring these factors and assessing their impact on performance,
organizations can gain a deeper understanding of the sources of their competitive advantage and make
informed decisions on how to leverage and enhance them.

3. Measuring competitive advantage evaluates the effectiveness of strategies:

Quantifying the impact of different strategies on competitive advantage helps assess their success and
guides strategic decision-making (Porter, 1996; Teece et al., 1997). Measuring competitive advantage
allows organizations to evaluate the effectiveness of their chosen strategies in creating and sustaining
a competitive advantage. By linking strategic initiatives to their impact on competitive advantage,
organizations can make data-driven decisions, refine their strategies, and allocate resources more
effectively.

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 4. Measuring competitive advantage provides a basis for performance improvement:
Tracking and analyzing competitive advantage over time enables organizations to identify areas of
strength and weakness and take corrective actions for performance improvement (Hitt et al., 2001;
Amit and Schoemaker, 1993). By continuously measuring competitive advantage, organizations can
monitor their performance relative to competitors and identify areas where they excel or lag behind.
This information can then be used to identify improvement opportunities, implement necessary
changes, and enhance their competitive position in the market.

In summary, previous research consistently underscores the importance of retention strategies in

achieving organizational success. The studies mentioned highlight the positive impact of retention
strategies on employee morale, job satisfaction, commitment, organizational culture, and financial
outcomes.

2.3 Background Information about Business Strategies:

To effectively analyze competitive advantage and make strategic decisions, it is imperative to have a
comprehensive understanding of various business strategies. This section provides an expanded and
organized overview of different business strategies based on previous research:

1. Cost Leadership Strategy:

The cost leadership strategy revolves around gaining a competitive advantage by offering products or
services at a lower cost than competitors (Porter, 1980). Organizations adopting this strategy aim to
attract price-sensitive customers and gain market share through cost efficiencies, economies of scale,
and tight cost controls. By focusing on cost reduction and operational efficiency, companies can
maintain a competitive edge in price-sensitive markets. This strategy often involves streamlining
processes, optimizing the supply chain, leveraging technology, and negotiating favorable supplier
contracts.

2. Differentiation Strategy:
The differentiation strategy aims to create a unique and distinctive offering in the market that sets a
firm apart from its competitors (Porter, 1980). Organizations employing this strategy emphasize
unique product features, superior quality, customer service, or brand image. By providing customers
with a differentiated value proposition, companies can command premium prices and build customer
loyalty. Differentiation can be achieved through innovation, superior customer experience, or
exclusive partnerships. This strategy requires a deep understanding of customer needs, market trends,
and effective branding and communication strategies.

3. Focus Strategy:
The focus strategy involves targeting a specific market segment or niche and tailoring products or
services to meet the unique needs and preferences of that segment (Porter, 1980). By concentrating
resources and efforts on a specific customer group or geographic area, organizations adopting this
strategy can achieve a competitive advantage by understanding and serving their target customers

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better than broader competitors. This strategy requires deep market knowledge, effective
segmentation, and the ability to deliver specialized products or services. It enables organizations to
develop expertise in a particular market and build strong customer relationships.

4. Blue Ocean Strategy:

The blue ocean strategy proposes creating uncontested market space by offering a unique value
proposition that combines elements of differentiation and low cost (Kim and Mauborgne, 2004). This
strategy suggests that organizations can break free from competitive red oceans (intensely competitive
markets) by exploring new market spaces where competition is limited or non-existent. By identifying
unmet customer needs and developing innovative business models, companies can create new demand
and capture untapped market opportunities. Blue ocean strategy encourages organizations to think
outside the box, challenge industry norms, and create their own rules of the game.

5. Innovation Strategy:
The innovation strategy focuses on driving growth and competitive advantage through continuous
innovation in products, processes, or business models (Tidd and Bessant, 2018). Organizations
adopting this strategy foster a culture of innovation and invest in research and development to
introduce novel and disruptive offerings to the market. By staying ahead of the curve and anticipating
changing customer preferences, companies can differentiate themselves and maintain a competitive
edge. Innovation can take various forms, including new product development, process improvements,
technological advancements, and business model innovations. This strategy requires a commitment to
experimentation, collaboration, and a willingness to take calculated risks.

2.3.1 Independent Variable (IV) Definition

In the context of this research, the independent variable (IV) refers to the various business strategies
that organizations adopt to gain a competitive advantage. These strategies play a critical role in shaping
an organization's approach to the market and its ability to outperform competitors. The following
expanded definitions provide a comprehensive understanding of each business strategy and its key
components:

1. Cost Leadership Strategy:

The cost leadership strategy revolves around offering products or services at a lower cost than
competitors (Porter, 1980). Organizations adopting this strategy aim to attract price-sensitive
customers and gain market share through cost efficiencies, economies of scale, and tight cost controls.
They focus on achieving lower production costs by optimizing operations, streamlining processes, and
leveraging technology. Additionally, they negotiate favorable supplier contracts to secure raw
materials at lower prices. By reducing costs, organizations can offer competitive prices while
maintaining profitability. This strategy is particularly effective in price-sensitive markets where
customers prioritize cost savings over other factors.

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2. Differentiation Strategy:
The differentiation strategy aims to create a unique and distinctive offering in the market that sets a
firm apart from its competitors (Porter, 1980). Organizations adopting this strategy emphasize unique
product features, superior quality, customer service, or brand image. They invest in research and
development to develop innovative products or services that offer superior performance or meet
specific customer needs. Differentiation can also be achieved through superior customer service,
personalized experiences, or effective branding and marketing strategies. By providing customers with
a differentiated value proposition, organizations can command premium prices, build customer loyalty,
and differentiate themselves from competitors.

3. Focus Strategy:
The focus strategy involves targeting a specific market segment or niche and tailoring products or
services to meet the unique needs and preferences of that segment (Porter, 1980). Organizations
adopting this strategy concentrate their resources and efforts on serving a specific customer group or
geographic area. They deeply understand the distinct requirements of the target market and develop
specialized products or services to meet those needs. By focusing on a narrow segment, organizations
can develop expertise, build strong customer relationships, and gain a competitive advantage. This
strategy requires effective market segmentation, market research, and the ability to provide tailored
solutions that meet the specific needs of the target segment.

4. Blue Ocean Strategy:

The blue ocean strategy proposes creating uncontested market space by offering a unique value
proposition that combines elements of differentiation and low cost (Kim and Mauborgne, 2004). This
strategy suggests that organizations can break free from competitive red oceans, which are intensely
competitive markets, by exploring new market spaces where competition is limited or non-existent.
Blue ocean strategy encourages organizations to identify unmet customer needs and develop
innovative business models that create new demand. By offering unique products or services that have
no direct substitutes, organizations can capture untapped market opportunities and achieve high growth
rates. This strategy requires a deep understanding of customer preferences, market trends, and the
ability to create new value for customers.

5. Innovation Strategy:
The innovation strategy focuses on driving growth and gaining a competitive advantage through
continuous innovation in products, processes, or business models (Tidd and Bessant, 2018).
Organizations adopting this strategy foster a culture of innovation and invest in research and
development activities to introduce novel and disruptive offerings to the market. They encourage
creativity, collaboration, and experimentation within the organization. Innovation can take various
forms, including new product development, process improvements, technological advancements, and
business model innovations. By staying ahead of the competition and anticipating changing customer
preferences, organizations can differentiate themselves, attract customers, and maintain a competitive
edge.

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2.3.2 Importance of measurements from previous studies of Business Strategies:
Measurement plays a crucial role in the study of business strategies as it enables researchers to quantify
and analyze the impact of different strategies on organizational performance. Previous studies on
business strategies have provided valuable insights and established measurement frameworks that are
essential for understanding the effectiveness and outcomes of these strategies. The following expanded
points provide a comprehensive understanding of the importance of measurements derived from
previous studies:

1. Performance Metrics:
Previous studies have identified and established performance metrics that capture the outcomes and
effectiveness of various business strategies. These metrics enable researchers to assess the financial
performance, market share, profitability, and growth rates associated with different strategies (Porter,
1985; Barney, 1991). For example, financial performance metrics such as return on investment (ROI),
return on assets (ROA), and return on equity (ROE) provide quantitative measures of a firm's financial
success. Market share metrics, such as market share percentage or market dominance, indicate the
firm's competitive position in the industry. By utilizing these established measurements, researchers
can compare and evaluate the performance of organizations implementing different strategies,
providing valuable insights into the relative effectiveness of each approach.

2. Customer Satisfaction and Loyalty:

Measuring customer satisfaction and loyalty is critical for evaluating the impact of business strategies
on customer perceptions and behavior. Previous studies have developed measurement scales and
models to assess customer satisfaction, loyalty, brand perception, and customer retention (Fornell et
al., 1996; Reichheld and Sasser, 1990).
These measurements enable researchers to understand the extent to which different strategies influence
customer satisfaction and loyalty. For instance, customer satisfaction can be measured using surveys
or rating scales to gauge customers' perceptions of product quality, service delivery, and overall
experience. Loyalty metrics, such as repeat purchase behavior, customer referrals, or Net Promoter
Score (NPS), provide insights into customers' likelihood to continue doing business with the
organization and recommend it to others. By measuring customer satisfaction and loyalty, researchers
and organizations can gauge the success of their customer-centric initiatives and make informed
decisions to improve customer relationships.

3. Innovation Metrics:
Measuring innovation is essential for evaluating the effectiveness of innovation strategies and their
impact on organizational performance. Previous studies have developed measurement frameworks to
assess innovation capabilities, new product development success rates, patent filings, and R&D
investments (Damanpour, 1991; Cooper, 1994).
These measurements enable researchers to quantify the level of innovation within organizations and
examine the relationship between innovation strategies and financial performance or market
competitiveness. For example, innovation metrics can include the number of new products or services
introduced, the percentage of revenue generated from new products, or the number of patents granted.
Research and development (R&D) investment as a percentage of revenue can also serve as an indicator

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of an organization's commitment to innovation. By measuring innovation, researchers can gain insights
into the effectiveness of strategies in driving organizational growth and competitiveness through
continuous improvement and new offerings.

4. Employee Engagement and Satisfaction:

Previous studies have emphasized the importance of employee engagement and satisfaction in driving
organizational performance. Measurement tools such as employee surveys, job satisfaction scales, and
turnover rates have been developed to assess the impact of business strategies on employee attitudes
and behaviors (Saks, 2006; Heskett et al., 1994).
These measurements enable researchers to evaluate the effectiveness of strategies in fostering a
positive work environment, attracting and retaining talent, and enhancing employee productivity. For
instance, employee engagement can be measured through surveys that assess employees' level of
commitment, motivation, and pride in their work. Job satisfaction scales capture employees'
perceptions of their job conditions, supervision, career growth opportunities, and work-life balance.
Employee turnover rates can also indicate the level of satisfaction and commitment within the
organization. By measuring employee engagement and satisfaction, researchers and organizations can
identify areas for improvement, optimize human resource strategies, and enhance overall
organizational performance.

5. Stakeholder Analysis:
Measuring the impact of business strategies on various stakeholders is crucial for understanding the
broader implications of these strategies. Previous studies have utilized stakeholder analysis techniques
and measurement frameworks to assess the effects of strategies on stakeholders such as suppliers,
distributors, communities, and the environment (Freeman, 1984; Clarkson, 1995).
These measurements provide insights into the social, environmental, and ethical dimensions of
business strategies, aiding organizations in addressing stakeholder concerns and ensuring responsible
and sustainable practices. For example, stakeholder surveys or interviews can be conducted to
understand the perceptions and expectations of different stakeholder groups. Environmental impact
assessments can measure the ecological footprint of organizational activities. Social impact metrics
can capture the organization's contributions to community development or employee well-being. By
measuring stakeholder impacts, researchers and organizations can align strategies with stakeholder
expectations, mitigate potential risks, and foster positive relationships with key stakeholders.

2.4.1 Empirical Studies:

Empirical studies play a fundamental role in the field of business strategy research as they provide
empirical evidence and insights into the real-world implementation and outcomes of various strategies.
These studies employ data collection methods such as surveys, interviews, observations, and analysis
of existing datasets to examine the relationship between business strategies and organizational
performance. The following expanded points provide a comprehensive understanding of the
importance of empirical studies:

16
1. Real-world Context:
Empirical studies provide a realistic understanding of how business strategies are implemented and
their effects in real-world organizational settings. By collecting data from actual organizations
operating in different industries, researchers can capture the complexities, challenges, and nuances that
arise during strategy formulation and execution (Eisenhardt, 1989; Yin, 2018). This contextual
richness enhances the external validity of the research findings, ensuring that the results can be applied
to real-world situations and allowing for practical implications and recommendations to be derived.

2. Quantitative Analysis:
Empirical studies often employ quantitative analysis techniques to analyze data and assess the
statistical significance of relationships between variables. Through statistical methods such as
regression analysis, correlation analysis, and hypothesis testing, researchers can determine the extent
to which business strategies influence organizational performance outcomes (Hair et al., 2019). These
quantitative analyses provide robust evidence and enable researchers to make data-driven conclusions
about the effectiveness of different strategies. By quantifying the impact of strategies, empirical studies
contribute to the development of evidence-based management practices.

3. Generalizability:
Empirical studies facilitate generalizability by examining a sample of organizations or participants that
represents a larger population. By employing appropriate sampling techniques, researchers can make
inferences about the broader population based on the findings from the sample (Creswell, 2014).
Generalizability allows for the applicability of research findings to a wider range of organizations and
industries, enhancing the relevance and impact of the research. However, it is important to consider
the limitations and potential biases of the sample to ensure the appropriate interpretation and
generalization of the findings.

4. Causal Inferences:
Empirical studies enable researchers to establish causal relationships between business strategies and
organizational outcomes. Through rigorous research designs, such as longitudinal studies or
experimental designs, researchers can establish temporal precedence and control for alternative
explanations, thus providing stronger evidence for causality (Shadish et al., 2002). Causal inferences
are essential for understanding the direct impact of strategies on performance and informing strategic
decision-making. However, establishing causality in complex organizational settings can be
challenging, and researchers need to carefully design their studies and consider alternative
explanations to strengthen the causal claims.

5. Industry and Comparative Analysis:

Empirical studies often involve industry or comparative analyses, where data from multiple
organizations or industries are examined. These studies enable researchers to identify industry-specific
trends, best practices, and performance benchmarks (Hitt et al., 2007). Comparative analysis allows
for a deeper understanding of the unique aspects of different strategies within specific contexts,
facilitating cross-learning and the identification of strategic implications across industries. By
analyzing data from multiple organizations or industries, researchers can identify patterns and trends
that contribute to a broader understanding of strategic management principles.

17
2.4.2 Theoretical Studies:
Theoretical studies in the field of business strategy aim to develop and refine theories, frameworks,
and conceptual models that enhance our understanding of strategic management. These studies
typically involve literature reviews, theoretical analyses, and conceptual development. The following
expanded points provide a comprehensive understanding of the importance of theoretical studies:

1. Conceptual Clarity:
Theoretical studies contribute to the development of clear and well-defined conceptual frameworks
that guide research and practice in the field of business strategy. By synthesizing existing literature,
these studies identify key constructs, relationships, and theoretical perspectives that are relevant to
understanding strategic phenomena (Eisenhardt and Graebner, 2007). Conceptual clarity enhances
communication, facilitates knowledge accumulation, and provides a solid foundation for empirical
research. By refining and clarifying concepts, theoretical studies enable researchers to build upon
existing knowledge and develop a shared understanding of strategic management concepts.

2. Theory Building:
Theoretical studies contribute to theory building by proposing new theories or refining existing ones.
These studies often involve theoretical analyses, conceptual modeling, and the integration of diverse
perspectives from multiple disciplines (Eisenhardt and Martin, 2000). By advancing theoretical
understanding, these studies stimulate further research, generate new hypotheses, and guide empirical
investigations. Theoretical studies provide a framework for organizing and interpreting empirical
findings, allowing researchers to make sense of complex phenomena and generate new insights.

3. Boundary Spanning:
Theoretical studies help bridge gaps between different disciplines and research streams within the field
of business strategy. They integrate insights from various fields such as economics, sociology,
psychology, and organizational behavior to develop a holistic understanding of strategic phenomena
(Barney and Arikan, 2001; Oliver, 1997). By crossing disciplinary boundaries, theoretical studies
foster interdisciplinary collaboration and promote a comprehensive understanding of business strategy.
They allow researchers to draw upon theories and concepts from diverse fields to deepen our
understanding of strategic management and its implications. By integrating perspectives from different
disciplines, theoretical studies contribute to a more holistic and multidimensional understanding of
strategic phenomena.

4. Advancing Knowledge:
Theoretical studies contribute to the accumulation of knowledge in the field of business strategy by
identifying research gaps, proposing new research directions, and generating research questions. These
studies critically examine existing theories, challenge conventional wisdom, and provide fresh
perspectives that drive intellectual progress (Eisenhardt and Graebner, 2007). By broadening the
theoretical foundations, theoretical studies inspire further inquiry and contribute to the advancement
of the field. They provide a basis for generating new knowledge, stimulating scholarly debates, and
informing strategic decision-making in organizations.

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2.5 Theoretical Framework:
A theoretical framework provides a conceptual structure for organizing and understanding the key
concepts, variables, and relationships that form the foundation of a research study. It serves as a
roadmap for researchers, guiding the formulation of research questions, the selection of appropriate
methodologies, and the interpretation of findings. The following expanded points provide a
comprehensive understanding of the importance of a theoretical framework:

1. Conceptual Structure:
A theoretical framework establishes a conceptual structure that outlines the key concepts and variables
relevant to the research topic. It identifies the main constructs and their relationships, allowing
researchers to define and operationalize these concepts in a systematic manner (Babbie, 2016). By
providing a clear conceptual structure, the theoretical framework helps researchers focus their
investigation and ensures the coherence and consistency of the study.

2. Literature Review:
Theoretical frameworks are typically developed based on an extensive review of existing literature.
This review helps researchers identify relevant theories, models, and empirical studies that provide
insights into the research topic (Creswell, 2014). By synthesizing existing knowledge, the theoretical
framework builds upon prior research and establishes a foundation for the current study. The literature
review also helps researchers identify gaps in the existing knowledge, which can inform the research
questions and objectives.

3. Theoretical Perspectives:
Theoretical frameworks integrate various theoretical perspectives to provide a comprehensive
understanding of the research topic. They draw upon theories from relevant disciplines and fields of
study to develop a multidimensional view of the phenomenon under investigation (Eisenhardt and
Graebner, 2007). By considering multiple theoretical perspectives, the theoretical framework allows
researchers to explore different facets of the research topic and generate richer insights. It promotes
interdisciplinary collaboration and facilitates a more holistic understanding of the phenomenon.

4. Hypothesis Development:
Theoretical frameworks guide the development of hypotheses or research questions. Based on the
conceptual structure and the theoretical perspectives, researchers can formulate specific hypotheses or
research questions that address the relationships between variables (Babbie, 2016). The theoretical
framework identifies the key variables and their expected relationships, providing a basis for
generating testable propositions. Hypothesis development ensures that the research study is grounded
in theory and allows for the empirical testing of theoretical predictions.

19
5. Methodological Guidance:
Theoretical frameworks provide methodological guidance by suggesting appropriate research
methodologies and data collection techniques. The conceptual structure and the research objectives
influence the selection of research methods, such as surveys, experiments, case studies, or archival
data analysis (Creswell, 2014). Theoretical frameworks also inform the selection of measurement
scales and data analysis techniques that align with the underlying theoretical constructs. By providing
methodological guidance, the theoretical framework ensures that the research study is conducted in a
rigorous and systematic manner.

6. Interpretation of Findings:
Theoretical frameworks assist in the interpretation of research findings by providing a lens through
which the results can be analyzed and understood. The framework helps researchers make sense of the
empirical data and draw meaningful conclusions (Eisenhardt and Graebner, 2007). It allows for the
integration of the findings with existing theories and models, facilitating theoretical advancements or
refinements. Theoretical frameworks help researchers contextualize their findings within the broader
theoretical landscape and contribute to the ongoing scholarly dialogue.

In summary, the purpose of the development of the research framework is to examine the relationships
between business strategies and competitive advantage. So, a theoretical framework of our research is
set up and as illustrated in the Figure 2.1.

IV DV

H1, H2, Competitive Advantage

Business Strategies
H3, H4

Figure 2.1

2.6 Hypothesis Development

The hypothesis for this research, based on the extant literature review and theoretical development
discussed in previous sections, is built on the premise that effective implementation of business
strategies and the pursuit of competitive advantage.

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2.6.1 The Main hypothesis

H 1: Organizations face significant challenges and barriers in developing and implementing effective
business strategies to gain a competitive advantage.

H 2: Organizations that can effectively identify and leverage their core competencies are more likely
to achieve a sustainable competitive advantage.

H 3: The effectiveness of business strategies in enhancing competitive advantage is influenced by

factors such as alignment with organizational goals, resource utilization, and adaptation to changing
market conditions.

H 4: Organizations that develop dynamic capabilities to adapt, innovate, and learn in response to
changing market conditions are more likely to maintain a competitive edge.

To test these hypotheses, we can collect data from organizations in various industries, assess their
challenges and barriers in strategy development and implementation, analyze their core competencies
and their impact on competitive advantage, investigate the factors influencing the effectiveness of
business strategies, and examine the relationship between dynamic capabilities and competitive edge.

Quantitative or qualitative analysis can be conducted to explore these relationships and validate the
hypotheses. Additionally, case studies and industry analysis can provide further insights into real-
world examples and practical recommendations for organizations to enhance their competitive
advantage through effective business strategies.

2.7 Conclusion

Chapter Two has provided a comprehensive overview of the key concepts and literature related to
business strategy research. The following points summarize the main findings and contributions of this
chapter:
1. Importance of Business Strategy Research:
Business strategy research plays a crucial role in understanding how organizations achieve their goals,
gain competitive advantage, and navigate dynamic business environments. It provides insights into the
formulation, implementation, and evaluation of strategies that drive organizational performance
(Eisenhardt and Martin, 2000).

21
2. Theoretical Foundations:
A solid theoretical foundation is essential for conducting rigorous and impactful business strategy
research. The chapter emphasized the importance of theoretical frameworks, which provide a
conceptual structure for organizing key concepts, variables, and relationships (Babbie, 2016). These
frameworks draw upon existing theories and perspectives to guide research questions, hypothesis
development, and data analysis.
3. Empirical Studies:
Empirical studies are instrumental in examining the real-world implementation and outcomes of
business strategies. They employ data collection methods such as surveys, interviews, and analysis of
existing datasets to investigate the relationship between strategies and organizational performance
(Eisenhardt, 1989; Yin, 2018). Empirical studies contribute to evidence-based management practices
by providing quantitative analysis, generalizability, and insights into causal relationships.
4. Theoretical Studies:
Theoretical studies contribute to the advancement of business strategy research by developing and
refining theories, frameworks, and conceptual models. These studies critically analyze existing
literature, propose new theories, and integrate diverse perspectives from multiple disciplines
(Eisenhardt and Graebner, 2007). Theoretical studies enhance conceptual clarity, foster
interdisciplinary collaboration, and stimulate further research in the field.
5. Theoretical Framework:
A well-developed theoretical framework guides the research process and enhances the coherence and
validity of business strategy studies. Theoretical frameworks establish a conceptual structure, integrate
theoretical perspectives, guide hypothesis development, and inform methodological choices (Creswell,
2014). They provide researchers with a roadmap for organizing their work, interpreting findings, and
contributing to the theoretical understanding of strategic management.

In conclusion, Chapter Two has highlighted the significance of business strategy research and the
interplay between theoretical and empirical studies. By establishing theoretical foundations and
utilizing empirical evidence, researchers can gain valuable insights into the complexities of business
strategy, contribute to the development of evidence-based practices, and advance the theoretical
understanding of strategic management.

22
 CHAPTER THREE: METHODOLOGY
3.1 Introduction:
In this crucial chapter, we delve into the very essence of our research endeavor: the methodology that
will guide us in exploring the intricate relationship between business strategies and competitive
advantage within the context of our chosen research topic. Our primary objective in this chapter is to
present a meticulous and systematic account of the research design, data collection methods, and data
analysis techniques that we will employ. By adopting a robust methodology, our research endeavors
to yield findings that are not just reliable, but also contribute meaningfully to the existing body of
knowledge surrounding business strategies and competitive advantage.

To accomplish our research objectives, we will embrace a mixed methods approach, combining the
power of qualitative and quantitative methodologies. The adoption of a mixed methods approach offers
a comprehensive understanding of complex phenomena, enabling researchers to capture both
subjective and objective dimensions (Creswell, 2014). This integrated approach allows us to achieve
a comprehensive understanding of the multifaceted dynamics that underlie business strategies and
competitive advantage, capturing both the subjective perspectives of key stakeholders and the
objective performance metrics of firms.

Our research design will unfold in two distinct phases, each offering its own unique perspective. To
begin, we will embark upon a qualitative phase wherein we engage in immersive exploration of the
perceptions and experiences held by industry experts, executives, and managers concerning the
intricate interplay between business strategies and competitive advantage. Through carefully crafted
semi-structured interviews, as recommended by Patton, we will facilitate in-depth discussions that
generate a wealth of rich qualitative data, allowing us to gain profound insights into the nuances and
intricacies of our research topic. It is crucial to note that our sample selection for these interviews will
be purposeful, ensuring representation from diverse industries, firms of varying sizes, and different
competitive positions. This deliberate approach will enable us to capture a diverse range of
perspectives and experiences, enriching the depth and breadth of our qualitative findings. Qualitative
research methods such as semi-structured interviews facilitate in-depth discussions and generate rich
qualitative data, providing deep insights into the research subject (Patton, 2015).

Building upon the insights derived from our qualitative phase, we will then embark upon a quantitative
phase, wherein we subject the identified relationships to rigorous analysis on a larger scale. To achieve
this, we will develop a comprehensive survey questionnaire, drawing upon the findings from the
qualitative phase as well as existing literature on business strategies and competitive advantage.
Quantitative research techniques, including surveys and statistical analysis, allow for the examination
of relationships on a larger scale, enabling the identification of significant patterns and associations.
(Hair et al., 2019). Following the recommendations of Hair et al., this carefully crafted instrument will
be distributed to a stratified random sample of firms hailing from diverse industries. Through this
expansive survey, we will gather quantitative data that will be subjected to appropriate statistical
techniques, such as regression analysis, allowing us to discern significant relationships and patterns
that emerge from the data.

23
By skillfully employing this mixed methods approach, our research aims to offer a comprehensive and
nuanced understanding of the strategies that contribute to competitive advantage and their profound
impact on firm performance. The triangulation of our qualitative and quantitative data will not only
enhance the validity and reliability of our findings but also provide a more holistic and robust
perspective on the multifaceted nature of our research topic.

3.2.1 Research Approach:

In our research, we will embrace a mixed methods approach, combining qualitative and quantitative
methodologies. This integrated approach allows us to achieve a comprehensive understanding of the
multifaceted dynamics that underlie business strategies and competitive advantage, capturing both the
subjective perspectives of key stakeholders and the objective performance metrics of firms. The
adoption of a mixed methods approach offers a comprehensive understanding of complex phenomena,
enabling researchers to capture both subjective and objective dimensions (Creswell, 2014).

By incorporating qualitative research methods, such as semi-structured interviews, we can delve into
the perceptions and experiences of industry experts, executives, and managers regarding the interplay
between business strategies and competitive advantage. These in-depth discussions generate rich
qualitative data, providing deep insights into the research subject. Qualitative research methods such
as semi-structured interviews facilitate in-depth discussions and generate rich qualitative data,
providing deep insights into the research subject (Patton, 2015).

In addition to qualitative methods, we will employ quantitative research techniques, including surveys
and statistical analysis, to examine relationships on a larger scale. This allows for the identification of
significant patterns and associations. Furthermore, we will utilize quantitative research techniques,
including surveys and statistical analysis, to examine relationships on a larger scale. This will enable
us to identify significant patterns and associations among different strategies and their impact on
competitive advantage (Hair et al., 2019).

The combination of qualitative and quantitative approaches in our research design enables us to gain
a comprehensive and nuanced understanding of the strategies that contribute to competitive advantage
and their profound impact on firm performance. The triangulation of data sources and methodologies
will not only enhance the validity and reliability of our findings but also provide a more holistic and
robust perspective on the multifaceted nature of our research topic.

3.2.2 Purpose of Study:

The purpose of our study is to explore the intricate relationship between business strategies and
competitive advantage. We aim to investigate how different strategies contribute to gaining a
competitive edge in the business landscape. Through this research, we seek to contribute meaningfully

24
to the existing body of knowledge surrounding business strategies and competitive advantage,
providing insights that are both reliable and valuable.
Understanding the relationship between business strategies and competitive advantage is crucial for
organizations in today's highly competitive market. It allows firms to develop effective strategies that
can lead to sustained competitive advantage (Johnson and Christensen, 2011).
Our study aims to uncover the underlying mechanisms and dynamics that drive competitive advantage
within different industries and firm contexts. By doing so, we can provide practical guidance for
organizations seeking to enhance their competitive positions. The ability to identify and deploy
resources and capabilities that lead to competitive advantage is a key challenge for firms. This study
aims to shed light on this process and provide valuable insights for practitioners (Barney, 1991).
Furthermore, our research seeks to contribute to the academic literature on business strategies and
competitive advantage. By conducting a rigorous investigation and employing a mixed methods
approach, we aim to generate new knowledge and theoretical insights that can expand the existing
body of literature. Continued research on business strategies and competitive advantage is essential
for advancing our understanding of how firms can achieve superior performance in the face of intense
competition (Porter, 1996).
Through our comprehensive study, we aim to bridge the gap between theory and practice, providing
actionable insights that can inform strategic decision-making in organizations. By understanding the
strategies that contribute to competitive advantage, firms can adapt and align their practices to achieve
sustainable success. Closing the gap between theory and practice is crucial for organizations to
effectively leverage their resources and capabilities, leading to superior performance (Teece et al.,
1997)

In summary, the purpose of our study is to explore the relationship between business strategies and
competitive advantage, contributing to both academic knowledge and practical insights. By conducting
a rigorous investigation and employing a mixed methods approach, we aim to provide valuable
guidance for organizations seeking to enhance their competitive positions and achieve sustainable
success in the dynamic business environment.

3.2.3 Type of Investigation:

Our investigation will involve both exploratory and explanatory elements. In the qualitative phase, we
will engage in immersive exploration through semi-structured interviews, aiming to understand the
perceptions and experiences of industry experts, executives, and managers regarding the interplay
between business strategies and competitive advantage. This exploratory phase will allow us to gain
profound insights into the nuances and intricacies of our research topic. In the quantitative phase, we
will subject the identified relationships to rigorous analysis, aiming to explain and quantify the
associations between different strategies and competitive advantage.

3.2.4 Level of Interference:

Our research will involve a moderate level of interference. During the qualitative phase, we will
actively engage with participants through semi-structured interviews, facilitating in-depth discussions

25
to gather rich qualitative data. In the quantitative phase, we will distribute a comprehensive survey
questionnaire to firms, which may require participants to allocate time and resources to provide
responses. However, our interference will be respectful of the participants' time and efforts, ensuring
minimal disruption to their routine operations.

3.2.5 Study Setting:

Our study will encompass diverse industries and firms of varying sizes and competitive positions. This
approach allows us to capture a broad range of perspectives and experiences, enriching the depth and
breadth of our findings. The sample selection for interviews and surveys will be purposeful and
stratified, ensuring representation from different sectors and providing a comprehensive outlook on
the relationship between business strategies and competitive advantage.

By meticulously designing our research with a mixed methods approach, including qualitative and
quantitative phases, our study aims to offer a comprehensive and nuanced understanding of the
strategies that contribute to competitive advantage and their impact on firm performance. The
integration of qualitative and quantitative data will enhance the validity, reliability, and holistic
perspective of our findings, ultimately advancing the knowledge in this field.

3.3 Population and Sampling:

Our study population consists of companies operating in the city of Sana'a, Yemen. The city of Sana'a
is an important economic center in the region, representing a variety of industries and sectors. By
focusing on this specific demographic, we can gain insights that are directly applicable to the local
business context.

3.3.1 Population:
The target population in our research consists of companies in various sectors within the city of Sana'a.
Five companies were chosen as follows: Al-Gharassi , Bin Humaid For Advertising , Mas For
Advertising , Al-Rawda Trading , and finally Hail Saeed Anam . 220 employees were also identified
as an approximate number of what our study needed. We aim to have a broad representation of
businesses to ensure our findings are generalizable to the city's wider business community.

3.3.2 Sample Size:

According to Reosoft website and Krejcie & Morgan Table for a given population, the sample size of
this research is 136 participants from the five companies that selected within the city of Sana’a.
Yemen. The purpose of this is to increase the reliability and accuracy of the research by having a larger
sample size. This also helps to reduce the chances of any bias or skewed results.

26
3.4 Instrumentation
The instrument used to collect data in this study will be a questionnaire specifically designed to gather
information related to business strategies and competitive advantage. A questionnaire is an effective
research instrument consisting of a series of questions that allow researchers to gather data from
respondents. It offers several advantages, such as the ability to reach a large number of people
relatively easily, providing quantifiable answers, and being relatively easy to analyze (Bailey, 1982).
To measure the opinions and attitudes of the respondents regarding business strategies and competitive
advantage, we will utilize a Likert scale. The Likert scale is a commonly used scale in quantitative
research that assesses the degree of agreement or disagreement with a set of statements. Respondents
will be asked to rate their level of agreement on a scale ranging from "Strongly Disagree" to "Strongly
Agree" (1-5) (Likert, 1932). This scale will allow us to gather quantitative data that can be analyzed
and interpreted statistically.

Strongly Disagree Disagree Neutral Agree Strongly Agree

1 2 3 4 5

3.5 Data Collection:

Data collection is a crucial aspect of any research study as it enables researchers to answer relevant
questions, evaluate outcomes, and make predictions about future probability and trends (Rouse, 2016).
In this study, we will employ a combination of primary and secondary data collection methods.

3.5.1 Primary Data:

Primary data refers to information collected by the researchers themselves for the purpose of the study
(Choolwe Kaile, 2020). To gather primary data, we will use a self-administered questionnaire
distributed to managers, supervisors, and employees working in selected companies in Sana'a City.
The questionnaire will contain structured questions that have been carefully prepared to capture the
necessary information related to business strategies and competitive advantage. The questions will be
designed to be concise, using simple language that is easily understandable by the respondents. To
ensure inclusivity, the questionnaire will be provided in both English and Arabic languages,
considering that many Yemeni employees do not speak English.
3.5.2 Secondary Data
Secondary data in this study, referrers and information collected in the past for other uses by a party,
which is beneficial to a researcher. These sources may include books, journal articles, intimal records
etc. (Choolwe Kaile, 2020). Secondary data is defined in (Murray, 2001) as that kind of data that is
available, already reported by some other scholars.
For this study, researchers try to obtain secondary data from (previous research, books, and the
internet).

27
3.5.3 Administration of Questionnaire:
To administer the questionnaire, the researchers will personally hand out the questionnaires to each
targeted company separately and collect them at the same time they are distributed. This approach will
minimize the issue of unreturned questionnaires and ensure a high response rate. In addition to the
questionnaire, face-to-face interviews could be conducted with some specific top management,
accounting, inventory, and human resources employees to gather more in-depth insights. These
interviews allows for detailed discussions and a deeper understanding of the perspectives and
experiences of the participants regarding business strategies and competitive advantage.

3.6 Scale Reliability:

To assess the reliability of the survey instrument, we will employ appropriate statistical techniques
such as Cronbach's alpha. Cronbach's alpha is a commonly used measure of internal consistency that
determines the reliability of scales by assessing the extent to which items within a scale are correlated.
By calculating Cronbach's alpha coefficient for each scale used in the survey questionnaire, we can
evaluate the internal consistency and reliability of the measurement scales. High reliability coefficients
indicate that the items within each scale are measuring the same construct consistently.

3.7 Summary:
In this chapter, we have discussed the population and sampling approach for our study, focusing on
businesses operating in Sana'a City, Yemen. The sample size will be determined using stratified
random sampling techniques to ensure adequate representation across different sectors. We will
employ self-administered surveys and semi-structured interviews as data collection instruments. The
reliability of the survey scales will be assessed using statistical techniques such as Cronbach's alpha.
These methodological considerations aim to ensure the validity and reliability of our research findings,
providing meaningful insights into the relationship between business strategies and competitive
advantage in the context of Sana'a City, Yemen.
In addition, we have discussed the instrumentation and data collection methods for our study on
business strategies and competitive advantage. A questionnaire will be used as the primary instrument
to collect data, employing a Likert scale to measure opinions and attitudes. The data collection process
will involve both primary and secondary data sources. Primary data will be collected through the
distribution of questionnaires with selected employees. Secondary data will be obtained from previous
research, books, and the internet. The administration of the questionnaire will be done personally by
the researchers, ensuring a high response rate. By employing these methodologies, we aim to obtain
reliable and relevant data to analyze the relationship between business strategies and competitive
advantage in the context of Sana'a City.

28
References of Chapter One, Two, and Three:

✓ Hair et al. (2019),

✓ Patton (2015),
✓ Johnson and Christensen (2011),
✓ Porter (1985, 1996),
✓ Wernerfelt (1984),
✓ Barney (1991),
✓ Prahalad and Hamel (1990),
✓ Giessen (2018),
✓ Teece et al. (1997),
✓ Dierickx and Cool (1989),
✓ Kim and Mauborgne (2005),
✓ Tidd and Bessant (2018),
✓ Creswell (2014),
✓ Eisenhardt and Graebner (2007),
✓ Babbie (2016),
✓ Yin (2018),
✓ Kim and Mauborgne (2004),
✓ Saks (2006),
✓ Heskett et al. (1994),
✓ Hair et al. (2019),
✓ Barney and Arikan, (2001),
✓ Oliver (1997),
✓ Babbie (2016),
✓ Researchers (2024).

29