Which type of strategy explicitly defines customer needs the company aims to meet?

The competitive strategy explicitly defines customer needs that the company aims to meet because it focuses on how a business intends to compete in the marketplace. This strategy identifies the target market and outlines how the company will differentiate itself from competitors by delivering superior value, which often includes a keen understanding of customer preferences and requirements.

In crafting a competitive strategy, companies analyze market conditions, customer demographics, and emerging trends to align their offerings with what customers truly want. This enables the business to position itself effectively against competitors and determines how it will deliver value—a critical element in meeting customer expectations.

Other strategies, while essential to a firm's functioning, do not primarily focus on defining customer needs. A product strategy, for instance, deals more with the specific features and benefits of the products offered rather than the overarching customer needs. An operational strategy focuses on the internal processes and efficiencies of producing and delivering goods and services. Meanwhile, a supply chain strategy pertains to the logistics and flow of goods rather than directly addressing customer requirements. Each of these plays a vital role in overall business success, but it is the competitive strategy that is specifically oriented towards understanding and fulfilling customer needs.