THE ROLE OF STRATEGIC MANAGEMENT IN BUILDING SUSTAINABLE COMPETITIVE ADVANTAGE AND IMPROVING FIRM PERFORMANCE

Abstract

This article examines the relationship between strategic management and competitive advantage in a comprehensive manner. In the modern business environment, organizations place great importance on strategic management in order to achieve sustainable success, strengthen their market position, and adapt to changing external conditions. The study shows that strategic management enables organizations to evaluate internal capabilities and external opportunities effectively, utilize resources efficiently, and achieve long-term objectives. The article explores the impact of strategic planning, competitive strategies, innovation, and resource management on firm performance. It also emphasizes that strategic management strengthens decision-making processes, organizational coordination, adaptation to market changes, and the identification of new business opportunities. The analysis reveals that firms which effectively implement strategic management practices tend to achieve higher market share, profitability, customer satisfaction, and sustainable competitive advantage. Therefore, strategic management is not only a managerial function but also one of the main mechanisms that ensures long-term development and a strong market position for organizations.