Summary Lecture 4.5: Strategic Positioning

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Summary - Lecture 4.5: Strategic Positioning

  • 1 Objectives


  • • Define strategy 
    • Discuss the nature of strategic positioning 
    • Introduce the merits of strategic planning 
  • 2 What is Strategy?

  • What is Strategy?
    • Defining a company’s position 
    • Making trade-offs, and 
    • Forging fit among activities. 


  • At general management’s core is strategy: 
    • Defining a company’s position 
    • Making trade-offs, and 
    • Forging fit among activities. 
  • 3 Principle #1 of Strategic Positioning


  • Principle #1 of Strategic Positioning 
    • Strategy is the creation of a unique and valuable position, involving a different set of activities. 
    – Serving few needs of many customers 
    – Serving broad needs of few customers

  •  
    Strategy is the creation of a unique and valuable ________ , involving a different set of activities. 
    position
  • What are 2 broad categories of customer strategy?
    – Serving few needs of many customers 
    – Serving broad needs of few customers
  • 4 Principle #2 of Strategic Positioning


  • Strategy requires you to make _____-____ in competing to choose what not to do. 
    trade-offs

  • What should you focus on for your customers?
     
    developing a solution and a brand that is meaningful and consistent to customers. 
  • What should you do first: serve a single market well or exploring growth opportunities?
    Emphasize serving one market well and explore growth opportunities later

  • • Strategy requires you to make trade-offs in competing to choose what not to do. 
    – You cannot be all things to all people. 
    – Focus on developing a solution and a brand that is meaningful and consistent to customers. 
    – Emphasize serving one market well and explore growth opportunities later. 
  • 5 Principle #3 of Strategic Positioning


  • • Strategy involves creating a “fit” among a company’s activities. 
    – Company activities must reinforce one another 
    • Wal-Mart’s low cost is supported through minimal personalized customer service and limited ambiance in its stores 
    • Nordstrom’s higher cost match personalized service 
    – Fit drives competitive advantage and sustainability 
    – Competitors struggle to imitate well-developed activities 

  • • Strategy involves creating a what among a company’s activities to ensure that they reinforce one another? 
    a "fit"

  • What will having a good "fit" help create in your company? 
    – Fit drives competitive advantage and sustainability 
    – Competitors struggle to imitate well-developed activities
  • 6 Strategic positioning


  • Strategic positioning should uncover new opportunities 
    • Strategic positions are often not obvious, and finding them requires creativity and insight. 
    • Entrepreneurs often discover unique positions that have been available but simply overlooked by established competitors. 

  • Strategic positioning should uncover what?  
    new opportunities

  • Strategic positions are often not obvious, and finding them requires creativity and _______. 
    insight
  • Entrepreneurs often discover unique positions that have been available but simply __________ by established competitors. 
    overlooked
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