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Strategic Positioning

Positioning your business in the marketplace.
 
A key step on the path to profitable business is the strategic market positioning of your enterprise.
 
Our learning center’s resource library will help identify ways to develop an effective go-to-market strategy to establish your brand. 
 
- What is strategy and how will your business position itself on the marketplace?

A market is never saturated with a good product, but it is very quickly saturated with a bad one.” - Henry Ford, Ford Founder

Strategy is a proprietary set of actions that serve targeted customers better than competition, while strategic positioning consists in defining the focus point of a company’s resources.
 
Strategy links vision and mission to their implementation through the organization:
 

Vision & Mission:
- Aspiration
- Raison d’être
- Broad direction

Strategy:

- Definition of business boundaries
- Competitiveness model

Organization:
- Structured resources and capabilities to implement the strategy and pursue the vision

 

- Why is strategic positioning important?

Determining the strategic positioning of your business is a key step in developing its go-to-market strategy and placing it on the path to success. Strategic positioning involves clear choices that you will have to make for your business.

Strategic choices determine the competitiveness model that your company decides to follow.

There are three models of competitiveness:
 
1. Cost leadership: Companies draw competitive advantage from lower cost position than competitors.
 
This model nearly always requires scale leadership in a properly defined market

2. Differentiation: Companies have brand, product or service differentiation.
 
In this model, companies do not have to be scale leaders e.g. followers can create leadership in a niche segment

3. Industry Influence: Companies capture disproportionate returns across the value chain based on ownership of scarce asset or exclusive customer relationships where switching costs are high
Companies in this model are often scale leaders
 
Tips for start-ups

It is very important that the chosen competitiveness model be reflected in a company’s operations and culture.

For example, a cost leader will focus on reducing costs in all steps of its operations. In contrast, a company pursuing a differentiation model will focus on ensuring that its operations support the premium commanded by its brand.