Strategic Position

Debaditya Maiti BM19018

"Strategy should reflect a distinctive value chain that configures all key business processes and
operations (operations, HRM, marketing, service delivery, etc.) in a unique way that is difficult for
competitors to imitate." Porter, 2001

A strategic plan is the organization’s roadmap or trip plan where the company focus on vision and it’s
mission strategy. The strategy is the roadmap where they think to travel the journey, scenery and
landscape in the industry or market they are operating.
The real art of understanding strategic position is in being aware of the linkages between these two
aspects, how they change over time and how they can be integrated to create value in the industry.
There should be proper binding of environmental forces,organisational resources and competences and
stakeholder expectations where mutually reinforce each with one another.

There are a number of tools and techniques that organisations can use to understand their strategic
position. In respect of strategic position, it is important that:
● The organisation needs to use the resulting information effectively. It needs to be discussed,
debated and challenged so that the implications can be understood by the managers of the
organisation.
● The organisation might need to develop its own tools and techniques to understand its position
effectively in the market. What really matters is that understanding the strategic position should
help the organisation to formulate and implement a successful strategy.
● Understanding the strategic position should not be an intense one off exercise associated with
the annual strategic planning cycle. Instead, it should be thin but ongoing. Some issues, such as
competitor information needed to be reviewed at least monthly.
Strategic positioning makes choices about how a business will “deliberately” protect core profits from
industry forces and retain a profitable position in the market and grow in the industry and generate
revenue.

❏ By offering differentiated value, that is through products and services that are both unique and
valuable to target consumers it is also known as DIfferentiation Strategy.
❏ By lowering prices well below competing alternatives it is also known as Price leadership
Strategy.
❏ Striking an effective combination of both differentiation and low prices or lower cost.

As a result of the dynamics of markets and competition in the industry, this market position is also called
as “Competitive Advantage” which becomes a bit of a moving target a fast-moving one in the industries,
making strategic positioning more like a process to adjust the perception of your business’s products and
services in the minds of the target customers.
Strategic Position consists of ​Macro Environment, Stakeholders, Industry, Culture, Resources.

Macro Environment​- This is done through PESTEL analysis thinking in mind the Political events,
Economic,Social,Technological,Ecological Environment and Legal. Government is responsible for
providing a stable framework for economic activity and, in particular, for maintaining and improving the
physical, social and market infrastructure.

Stakeholders- ​Key stakeholders who are involved in strategic planning are those invested interest in the
success of the organization.They include employees,unions,customers,vendors, shareholders,regulatory
agencies,owners,supply chain partners,community members and others who depend on to serve the
organization.

Industry- ​A company's relative position within its industry matters for performance.Strategic positioning
reflects how a company makes about the kind of value it will create and how that value will be created
differently than competitors.They should analyse by Porter’s Five Forces. Critical success factors are
those factors that are either particularly valued by customers and it gives a cost advantage .
Blue and Red Ocean Thinking​-​ These ​‘Blue Oceans’​ are new market spaces where competition is very
low and ​‘Red Oceans’​ are where industries are already competitive and their rivalry between the
companies is very intense.

Culture- ​It consists of expansiveness and creativity. ​Environments should be inventive and open minded
where people spur new ideas and explore ideas.The organization’s people should be warm,collaborative
and welcoming where team members support each other.Leaders should emphasize teamwork and
positive relationships.

​Resources- ​Strategic resources are the building blocks of competitive advantage in any business.The
standard company resources that combine to create competitive advantage are a company's financial
strength, its enterprise knowledge and its workforce.

VRIO​ is a business analysis framework that forms part of a company’s larger strategic scheme. The
primary strategic process that any firm begins with a Vision statement and continues on through
Objectives, Internal & External analysis, Strategic choices and Strategic Implementation.

Example: ​Fair and Lovely ​symbolizes ​Fairness leading to beauty leading to Good Husband to fairness
leading to Self Confidence leading to Good career.​

Their strategy approach is not to create something different or new but to manipulate what’s already in the
mind of the customer.They have been maintaining its million of young customers trust and perceived
value towards brand and ruling fairness cream in the market.