The business environment is highly dynamic and continuously evolving. The changes happening in the external environment challenge organisations to find novel and unique ideas to remain in business and succeed. As the world is getting smaller and the competition is increasing, organisations have increasing pressure to develop their business and strengthen its competitiveness. Strategic thinking and strategic management are highly relevant and important for all the managers in organisations in order to achieve competitive advantage, high performance for success and to ensure survival and growth of business.
A firm must identify its position relative to the competitors in the market. The objective of a competitive strategy is to generate competitive advantage, increase market share and beat competition. A competitive strategy consists of moves to:
* Attract customers
 * Withstand competitive pressures
 * Strengthen market position.
Competitive Landscape
Competitive landscape is a business analysis which identifies competitors, either direct or indirect. Competitive landscape is about identifying and understanding the competitors and at the same time, it permits the comprehension of their vision, mission, core values, niche markets, strength and weaknesses in the market places and helps it to choose and implement effective strategies that will improve its competitive landscape. 
An in depth investigation and analysis of a firm's competition allows it to asses the competitor's strengths and weakness in the marketplace and helps it to choose and implement effective strategies that will improve its competitive advantage.
Steps to understand the competitive landscape
1.  Identify the competitor: The first step to understand competitive landscape is to identify the competitors in the firm's industry and have actual data about their respective market share.
   This answers the question:
  * Who are the competitors?
2.  Understand the competitors: Once the competitors have been identified, the strategist can use the market report, internet, newspapers, social media, industry reports and various other sources to understand the product and services offered by them in different markets.
   This answers the question:
   * What are their products and services?
3.  Determine the strengths of the competitors: What are the strength of the competitors? what do they do well? Do they offer great products? Do they utilize marketing in a way that comparatively reaches out to more consumers. Why do customers give them their business?
   This answers the questions:
    * What are their financial position?
    * What gives them cost and price advantage?
    * What are they likely to do next?
    * How strong is their distribution network?
    * What are their human resource strengths?
4.  Determine the weaknesses of the competitors: Weaknesses (and strengths) can be identified by going through consumer reports and reviews appearing in various media. After all consumers are often willing to give their opinions, especially when the products or services are either great or very poor.
   This answers the question:
    * Where are they lacking?
 5.  Put all the information together: At this stage, the strategist should put together all information about competitors and draw inference about what they are not offering and what the firm can do to fill in the gaps. The strategist can also know the areas which need to be strengthen by the firm.
   This answers the questions:
   * What will the business do with this information?
   * What improvements does the firm need to make?
   * How can the firm exploit the weakness of competitors?
Having a competitive advantage is necessary for a firm to compete in the market. Competitive advantage from a firm's ability to perform activities more effectively than its rivals. But what is more important is whether the competitive advantage is sustainable. By knowing if it is a leader, challenger, or follower, it can adopt appropriate competitive strategy.