Chapter 6, Problem 1UTC

Summary Introduction

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

1. Few needs and many customer
2. Broad needs and few customer
3. Broad needs and many customer

An organization has to do tradeoffs between some strategies. They have to choose not only the strategies they should follow but also the strategies they should not follow. The ways in which the activities work together and strengthen one another is the third principle that underlies it.

Conclusion

Therefore, strategic positioning helps in attaining organizational goals and improves sustainability of operations.