Strategic positioning involves three key principles:
1. Strategy creates a unique, valuable position by performing activities differently from competitors and delivering greater value. Operational effectiveness alone is not a sustainable advantage.
2. Strategy requires trade-offs and deciding what activities to perform versus what not to.
3. Maintaining a competitive advantage requires a unique combination of activities that is difficult for competitors to imitate. The fit between activities is important for strategic positioning.
Strategic positioning involves three key principles:
1. Strategy creates a unique, valuable position by performing activities differently from competitors and delivering greater value. Operational effectiveness alone is not a sustainable advantage.
2. Strategy requires trade-offs and deciding what activities to perform versus what not to.
3. Maintaining a competitive advantage requires a unique combination of activities that is difficult for competitors to imitate. The fit between activities is important for strategic positioning.
Strategic positioning involves three key principles:
1. Strategy creates a unique, valuable position by performing activities differently from competitors and delivering greater value. Operational effectiveness alone is not a sustainable advantage.
2. Strategy requires trade-offs and deciding what activities to perform versus what not to.
3. Maintaining a competitive advantage requires a unique combination of activities that is difficult for competitors to imitate. The fit between activities is important for strategic positioning.
Kritish PR 190101056 Medha Bhattacharjee 190101061 Niharika Bansal 190101070 Sai Srivastav Thanneru 190101098 Saurabh Warde 190101105 Anantaraman LM 190103023 What is strategy? People generally confuse operational effectiveness with the concept of strategy, but although operational effectiveness is necessary for a successful strategy, it isn’t sufficient. The parameters of effectiveness can easily be adopted by the competitors. It is important for an organization to have a strategic differentiating factor to have a competitive advantage. They should be able to deliver a unique and greater value to the consumers along with effective operational capabilities to keep up with the performance of the offering. When a company offers a greater value, they hold the opportunity to charge higher prices for their offerings. Operational effectiveness on the other hand means performing similar acts better than their competitors. Although, an organisation has to improve their OE continuously for higher profitability, it is certainly not enough. It is observed that certain companies have only invested on improvising their OE and in the long run have incurred diminished profits.
Competitive strategy is about being different, delivering a unique value to
the customers which they don’t get from any other company. Most managers express strategic positioning from the customer’s point of view, pointing out the benefits of using the product/services. But in the truest sense, strategy is the decision to perform the activities differently, taking the risk of being unique in the value proposition. Strategic positioning is usually not obvious and it takes a keen eye and a creative mind to find that out. Many competitors overlook these gaps and one new organisation comes in and disrupts the market with their unique positioning. There are mainly two types of positioning for the customers: 1. Variety based positioning: where the company positions their products for a wide variety of customers. Here, the reachability is higher but only some of the customer needs are met. 2. Need based positioning: Here the products are positioned according to the needs of certain customers. It is prevalent in areas where different customers have different needs. But in this case, there has to be in-depth research. Companies generally ignore the importance of need based positioning and this gap created in the core offerings are filled by competitors and hence, they get a competitive advantage.
Establishing a strategic positioning is also not enough for an organization
to succeed, as they can be adopted or imitated by competitors. Although adopting the unique positioning of the competitors is not easy and are often subjected to critic and confusion, it is still not impossible. Therefore, to maintain the competitive advantage, the value proposition and the positioning should not only be unique, but should also be inimitable.
The positioning choices drive the set of activities a company will
perform. It is desirable for an organisation to achieve operational excellence in terms of every individual activities but it is important to strategize the activities, their order, and their nature: the combination of the activities to achieve sustainability. It is the unique combination of these activities which is translated to a strategic advantage for an organisation.
In short, the three key principles of strategic positioning are:
1. Strategy is the creation of a unique valuable position, involving a different set of activities. 2. Strategy is about trade-offs and choosing what to do as well as what not to do. 3. Strategy is about the combination of activities and creating the correct fit among the activities