Strategic management plays a vital role in this cut-throat competition market and globalised market. Its importance is as follows : 

(i) Ensures Long-Term Survival in the Marketplace :

Strategic management identifies opportunities and threats that influence the organisational performance. It makes use of opportunities and minimises threats to make sure that organisation can survive in the market by outperforming its rivals. 

(ii) Effective and Smooth Running of Business : 

Strategic management ensures effective and smooth running of business as it analyses the changes in the environment, identifies the new opportunities, helps in mitigating the future contingencies.

(iii) To Cope-up With Changing Environment : 

Through this, the management can not only face the environmental challenges, but it also capable to grab the opportunities. Thus, this system helps in effective management and in coping with the changing environment.

(iv) Helpful in Taking Best Decisions : 

Strategic management helps in taking the best decisions as :

1. It provides the required facts, data and information. 

2. It helps in identifying the main problems of the organisation. 

3. It indicates the best alternative. 

4. It compels the manager to think for the future.

(vi) Other Benefits : 

It helps speeding up implementation of core strategies, focusing on every one in the organisation, building an executing team that serves as a model of cross functional or horizontal team work, clarifying competitive advantage, providing tangible tools for dealing with stress or change.