2.3 Choosing Strategic Alternatives
After determining the need for strategic change and conducting a situational analysis, the last step in the strategy-making process is to choose strategic alternatives, that will help the company create or maintain a sustainable competitive advantage. According to strategic reference point theory, managers choose between two basic alternative strategies. They can choose a conservative, risk-avoiding strategy that aims to protect an existing competitive advantage. Or they can choose an aggressive, risk-seeking strategy that aims to extend or create a sustainable competitive advantage.