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