To determine:
Strategic Positioning and three principles that underlie it.
Introduction:
To successfully run and grow in the market, strategies are important, strategic positioning tends to achieve sustainable competitive advantage.
Answer to Problem 1UTC
Solution:
According to Michael Porter, “strategic positioning attempts to achieve sustainable competitive advantage by preserving what is distinctive about a company.”
Three principles that underlie strategic positioning
- Unique and valuable position
- Requires trade-offs in competing
- Involves creating a “fit” among activities
Explanation of Solution
According to the definition given by the Porter, do same activities as company’s rivals or competitor do but in a different or more effective to way to attract the market. First principle unique and valuable position says that a strategic position arises from three sources that are
- Few needs and many customer
- Broad needs and few customer
- Broad needs and many customer
Therefore, strategic positioning helps in attaining organizational goals and improves sustainability of operations.
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