Competitive strategy is the plan used by a company indicating how it will compete with other companies producing the same products. Basically, this strategy is formulated when a company examines how its strengths and weaknesses match up to with those of its competitors. A good example here is the strategy used by a small meatpacking company which has resolved to focus on a particular place where products provided in restricted areas after learning that it cannot struggle with major companies providing similar products. Corporate Strategy is the direction taken by a company with an aim of succeeding in the long run. On this basis, the establishment of a corporate strategy involves developing a rationale and capacity of the company's undertakings and the environments of the company. When planning for corporate strategy, a company should put into consideration the environment in which it is working on, its place in the market place, and the competitions factors from other companies. In this case corporate strategy can be illustrated by the example of Bic Pen Corporation when it expanded beyond ballpoint pen production into cigarette lighters; it utilized the same technology and similar distribution channels to sell its new products.

Functional strategy is the process used by businesses and companies to strengthen the practical and managerial resources as well as harmonization skills in order to come up with a foundation on capability. Importantly, functional strategy involves price, promotion, place, and product. For example a meatpacking small company may decide to improve its distribution channels and lower the price of products in order to effectively compete with other major companies producing the same products. On the other hand, cooperative strategy is a tactical association or joint business enterprise approach with challengers in a company. A good example here is when two companies join hand distributing a product to the customer which may be very costly to distribute alone.

Cooperative strategy as defined above is the process where two or more companies pull their strengths together to accomplish a certain beneficial goal. In this case, two companies may realize that distributing a certain product to the customers is very costly and therefore they decide to come together and share the costs equally. On this basis, it becomes the second best solution of competition from the competitive. In this relation, companies may be having weaknesses in distributing goods to the customers and therefore it would be very important if they combine together in the distribution process. When this is done, the companies which combined in distribution will share the profits. This is very advantageous to the small companies which could not distribute the product alone.

It has been found that, cooperative strategy is very useful in enhancing competitive strategy as it improves the qualities that are beneficial to the competitive advantage. In this case, this strategy minimizes competition as different companies are working in combination to get profits. Additionally, cooperative strategy reinforces business strategy by making business missions and visions more achievable than ever. Certainly, this strategy is very effective in making sure that companies are best positioned to compete more effectively with their competitors.

Arguably, in cooperative strategy companies realize their objectives and goals by cooperating with other companies producing the same products rather than competing with them. Additionally, this strategy adds a significant advantage to companies that lack competence in terms of resources to secure a competition. It has been found that, this strategy is beneficial as it provides companies easier access to new markets. When companies assist each other in a business, they learn from each other in terms of planning and management and can use this as a tool for competition in the future.