In highly competitive industries, companies need to invest a lot of resources to compete with other competitors, which increases strategic costs.

Example: Competition among many automobile manufacturers in the automobile manufacturing industry requires a large amount of investment in research and development, advertising, marketing, etc., which increases strategic costs.

When new competitors enter the market, companies need to adjust their strategies to remain competitive, which increases strategic costs.

Example: When emerging electric vehicle manufacturers enter the traditional automobile manufacturing market, traditional automobile companies need to increase investment in R&D to meet competition, which increases strategic costs.

Changes in market demand may cause companies to adjust product lines and market positioning, increasing strategic costs.

Example: The smartphone market has shifted from being function-oriented to user-experience-oriented. Enterprises need to carry out product innovation and market adjustment, which increases strategic costs.

The continuous upgrading of technology requires enterprises to carry out technological upgrading and application innovation, which increases strategic costs.

Example: In the computer industry, rapid changes in hardware and software technology require companies to constantly update equipment and technology, increasing strategic costs.

When enterprises choose to adopt new technologies, there are technology implementation risks and they need to invest additional resources to reduce risks, which increases strategic costs.

Example: Enterprises adopting artificial intelligence technology may face risks such as technical instability and data privacy during the implementation process, and need to invest additional resources to deal with it, increasing strategic costs.

Changes in laws and regulations may require companies to make business adjustments and compliance initiatives, increasing strategic costs.

Example: In the financial industry, changes in financial regulatory policies may require banks to carry out product innovation and risk management adjustments, increasing strategic costs.

Government policy support can provide opportunities for enterprises, but it also requires enterprises to make supporting investments, which increases strategic costs.

Example: The government has introduced policies to support the development of new energy vehicles, and companies need to conduct new product research and development and production line layout, which increases strategic costs.

Enterprises need to invest human resources to implement strategies, including recruitment, training, management, etc., which increases strategic costs.

Example: When a company expands, it needs to recruit and train new employees, which increases strategic costs.

Implementing the strategy requires additional financial support, including R&D investment, marketing promotion, resource integration, etc., which increases strategic costs.

Example: Enterprises require additional investment in new product development and marketing, which increases strategic costs.

Implementing the strategy requires reasonable arrangement of time, including project planning, execution and monitoring, etc., which increases the cost of the strategy.

Example: Enterprises need to complete new product development and launch within a limited time, which increases strategic costs.