In the past few years there has been a dramatic change in the orientation of marketing, and strategic thinking has become the order of the day. More and more attention has been paid to the competitor. Competitive marketing in general has become an area of primary concern to marketers, managers, and businessmen. Despite its potential, however, competitive marketing strategy has received relatively little attention in the marketing literature. Few studies have provided analytical techniques for gaining a clearer understanding of industries and competitors, and those that have emerged are considered to lack breadth and comprehensiveness. This study of competitive marketing strategy represents a step towards bridging this gap, by reviewing the concepts and issues related to the practice of competitive strategy and its relation to corporate success. It shows how marketing factors, besides others, shape the competitive position of firms within an industry or any industry within the world market place. A general view of competitive marketing strategy is presented and thereafter illustrated with specific evidence about the competitive dilemma facing the British car industry. It is hoped that this work will not only provide help for practitioners who need to develop an appropriate strategy for a particular business, or scholars trying to understand competition better, but also be of help to analysts and policy makers within government who wish to understand the pressures that affect the competitive position in an industry or the whole economy in the world trade scene. The study generally makes the point that it is, after all, the practice of competitive marketing strategies within individual businesses that largely determines national competitiveness.