STRATEGIC POSITIONING

KUMAR HARSHWARDHAN

ABOUT STRATEGIC POSITIONING

Unique way a company delivers product or services better than the competitors by identifying the unique capabilities to explain differences between the companies , potential uniqueness and therefore superior performance

FEATURES OF EFFECTIVE STRATEGIC POSITIONING

Strategy rests on unique activity Sustainable strategic position requires trade offs Role of leadership is important Fit drives both competitive advantage and sustainability hence strategic fit is very important

ORIGINS OF STRATEGIC POSITIONS

Needs based
Variety based
Strategic position

Access based

CONSIDERATIONS IN STRATEGIC POSITIONING

The Environme nt

Expectati ons & purposes

Strategic capability

ENVIRONMENT

Existence of organization in context of PESTEL and its affects Understanding the opportunities & threats arising due to PESTEL variables and working upon it Competition

STRATEGIC CAPABILITIES
The ultimate in strategic positioning is finding a true alignment between sustainable core competencies and enduring market demand because no market demand lasts forever and no competency can be sustained without a corresponding demand

EXPECTATIONS & PURPOSES

Understanding the expectations of stakeholders and prioritize accordingly Cultural influences within the organization & from the world Catering the ethical issues

RELEVANCE OF STRATEGIC POSITIONING

Creates an image and perception about an organization in consumers mind A distinctive value chain embodying choices about how the organization will operate differently Making clear tradeoffs and choosing what not to do Choices of activities across the value chain that fit together and reinforce each other

STRATEGIC POSITIONING OF APPLE COMPUTERS

Positioned itself as a company driven by Innovation Understood that PC market has achieved the growth stage and is slowly consolidating. Revolutionized the music , mobile communication and tablet industries by filling the unoccupied differentiated product spaces by innovating Outsourced the production to china to take advantage of globalization

Contd.

Used the vision of Steve Jobs to make these gadgets user friendly and provide superior product experience Created an ecosystem to interconnect these devices through iTunes and iOs Through young and talented human capital , it has even ventured into corporate market

IRRELEVANCE OF STRATEGIC POSITIONING

In hyper competitive market where environment is very dynamic Distinctive value could be easily surpassed or copied PESTEL variables are very volatile Work force is not motivated enough to work on core competencies to deliver result

Nokia Mobile

In technically dynamic mobile telephony sector , smart phone makers were not able to delight customers by making the applications simpler to understand Nokia was not embracing change , it was resisting it It had misguided view of competition and wanted to grow without innovation Distinctive advantage of Nokia was easily surpassed by iPhone & Samsung mobiles by sensing an opportunity in smart phone market

BY- Kumar Harshwardhan Enroll No.- 12BSPHH010487