Define strategic positioning. Explain the three principles that underlie strategic positioning.
What will be an ideal response?
Strategic positioning attempts to achieve sustainable competitive advantage by preserving what is distinctive about a company. It means, according to Porter, "performing different activities from rivals, or performing similar activities in different ways."
Three key principles underlie strategic positioning:
Strategy is the creation of a unique and valuable position, which emerges from three sources: few needs, many customers; broad needs, few customers; or broad needs, many customers.
Strategy requires trade-offs in competing. A company has to choose not only what strategy to follow but what strategy not to follow.
Strategy involves creating a "fit" among activities. "Fit" has to do with the ways a company's activities interact and reinforce one another.
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