Strategic vision involves decisions by the top management of a coming about where to compete, when to compete, and How to compete. It may also involve deciding not to compete. These decisions require knowledge of market needs and trends, competition, and the strengths (and weaknesses) of the organization.

Rapidly changing markets and competitive threats call for high levels of executive skill in charting the course of an organization through a constantly changing business environment. Assessing that environment and deciding the future product and market direction of the corporation are critical to the performance of the enterprise.

Top management must anticipate and deal proactively with future threats and opportunities; it must select the product and market area in which the corporation can compete best and then develop market-driven strategies for gaining competitive advantage.

SMH's management was not complacent in deciding how the company should compete in the watch industry. The game plan used by-management included a portfolio of watch brands covering a range of prices from inexpensive to expensive.

Finding competitive advantage and improving organizational effectiveness are important issues in selecting business strategies.