Evaluation of Competitive Strategies and Organizational Performance

Abstract

An understanding of a competitive strategy and organizational performance can help managers identify decision making processes. Attempts to find the most appropriate strategies for the company which has a better performance. The statistical population study includes food companies of Khorasan Razavi Province. 69 companieswere selected through sample size determination method of Cochran by two-stage cluster sampling. The questionnaires were available to senior managers of companies to test the hypothesis through Pearson correlation then cluster analysis, strategic groups available on the food companies have been identified. The following results were obtained. There is a direct positive relationship between competitive strategies and organizational performance in food companies. Distinctive companies and Cost leadership have a better performance compared with companies implementing Hybrid strategy.

Keywords

• competitive strategy
• differentiation strategy
• cost leadership strategy
• organizational performance
• strategic groups