The Significance of Strategy: The influence in regards to the approach in the establishment of exploration and exploitation

Many regard the key asset of a competitive firm in its ability of establishing a winning business strategy. Indeed, despite the company’s abundant resources and competitive positioning, unless it has the ability to foster and solidify a resourceful business strategy, sustainable growth plus returns are challenges to maintain. According to Michael Porter (1996), the definition of strategy is reminded that “competitive strategy involves positioning a business to maximize the value of the capabilities that distinguish it from its competitors”. With such distinguished capabilities the firm has the opportunity to win for a long time, which is the core objective of a corporation. Hence, given the significance of what strategy entails, the key topic to discuss in the paper is directed in the following questions - although the current world is with much abundance than prior, why so many companies are still failing? Also, how can exploration and exploitation be instrumental in the development of a business strategy? And finally, do the businesses really understand the significance of strategy, and have an appropriate competitive strategy that is being incorporated? Herewith, the paper is to explore the reasons behind the significance of business strategy and the influence it may have in relations to exploration and exploitation which can be sought as a resolution for companies to be more successful than not.