Strategic options are creative alternatives for action oriented response to environmental factors. Strategic options take advantage from the environment. It can be identified after internal assessment focusing on institutional aspiration of the company. SWOT analysis may be a helping tool to develop and determine a creative and appropriate strategic alternative.
Strategic options are identified and developed by top level executive at different levels of a company. Generally, strategic options are developed on the basis of business definition. Business definition is made from following three elements;
⦁ Customer needs
⦁ Customer group
⦁ Alternative technologies.
When a company attempts to change any of the elements of the business definition, it adopts a different strategy.