Competitive Positioning is a strategic business process focused on identifying, understanding, and reducing the risk of being placed in a competitive position. Competitive position positioning describes a company’s position relative to competitors within the same industry. Competitive position positioning allows a company to take advantage of opportunities to gain market share, reduce cost, increase market share size, or even exit a given market. The analysis of competitive position is conducted in order to allow a company to create strategic plans to preserve an edge, try an improvement, or exit a given market.

The analysis of competitive positioning helps a company to distinguish itself from other companies in a given industry. In order to deliver competitive positioning a strategy must be developed and implemented to overcome current and future competitive threats. There are a number of factors that need to be considered when determining what strategy to implement.

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Many companies fail to define their competitive positioning and do not understand the benefits that can be achieved through an appropriate positioning strategy. Often, companies focus on only one or two key aspects of their business in relation to their industry or product. Unfortunately, without identifying all of the important factors, there is no way for a company to determine how to position itself to achieve the most optimal results. Competitive intelligence allows a company to recognize and execute on a number of key value propositions.

Competitive positioning begins with identifying weaknesses in the company’s current business model and seeks to overcome those weaknesses through a series of strategic measures. Some of the strategic measures a company can implement include packaging, pricing, promotion, advertising, and communications. In order to provide value to customers, a company should not only develop an efficient distribution system but also provide value through promotions, branding, and communications. A strong distribution network will allow a company to capitalize on existing strengths and reduce market segments that are cost-competitive.

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In order to deliver value, a company must be positioned to provide the customer with the highest level of performance. This is achieved through developing the best distribution networks while also providing the highest level of productivity. Many companies that have performed well in the past are still able to differentiate themselves from other competitors because they are positioned to deliver value at the highest level.

The development of a robust marketing strategy is critical to competitive positioning. Properly developed marketing strategies can help a company create new markets, penetrate existing markets, and provide a platform for sustained growth. The development of a comprehensive marketing strategy can include several elements including creating value by delivering superior products and/or services, creating a competitive edge through strategic innovations and market alliances, and consistently generating and selling high quality goods and services. Companies that properly develop and implement a comprehensive marketing strategy are those that realize the potential to create substantial long-term sustainable profits.

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