MSME sector is called as the engine of economic development and the need for growth of the economy globally. This sector has been critically important for every developing country. MSMEs are exposed to greater opportunities and face huge challenges in global market. This particular research is undertaken to understand the problems faced by MSME in adopting strategic management as a tool for MSMEs in achieving competitive advantage over a long run. Significant research proved that the performance of MSMEs be increased by strategic management. Yet, most of the Indian MSMEs fail to adapt strategic management and the reasons of lack of strategic management in Indian MSMEs is not well understood. This article questions the common approach to understand the importance of strategic management and provides guideline in applying strategic management to prevent business failure