COMPETITIVE ADVANTAGE AND STRATEGY FORMULATION IN MANAGEMENT

This article examines the theoretical foundations and practical mechanisms of competitive advantage and strategy formulation in management. Drawing on classical and contemporary strategic management literature, including the works of Michael Porter, Jay Barney, C.K. Prahalad, Gary Hamel, and Henry Mintzberg, the paper analyzes how organizations achieve and sustain superior performance. The study integrates industry-based and resource-based perspectives, dynamic capabilities theory, and strategic positioning approaches. The findings demonstrate that sustainable competitive advantage emerges from the alignment between external industry conditions and internal firm-specific resources and capabilities. The article is based exclusively on established academic sources and provides a structured synthesis suitable for OAK-level academic publication.