Today, we've been focused on Determining Competitive Positioning.
And the idea here is that we're focused on how to understand that there
are different market positions within a particular industry or
market segment that are more favorable than others.
Some positions are more valuable, positions to occupy, than others.
So I think there's several key ideas to take away from a lot of this material.
First of all, positions like markets are defined both by the market needs and
by the ways of delivering on those needs.
It's not just about the idea of it It's about what can we deliver.
Second key idea is that industries often have more than one profitable position.
So, if you think of a strategy map or if you think of
generic competitive positions, it's very possible to occupy a differentiated or
a nitch position that's highly profitable.
But it's also possible to occupy a cost leadership position that can also be
equally profitable.
The key is different strategies are required
to execute on those different competitive positions.
Third key idea is the idea that profitable or rent producing positions
rely on both favorable industry structure but also on superior capabilities.
It's putting together the insights of understanding the makeup of
the market segment or the competitive industry.
And also understanding how we can do something superior to our rivals within
that context.
It's putting these ideas together that helps us really identify
these favorable market positions.
Right?
Fourth idea.
Firms can combine multiple positions.
It's possible to try to pursue an integrated market position strategy.
To pursue, in other words,
some level of differentiation as well as cost leadership.
But there's a caution here.
Firms need to be really careful not to get stuck in the middle and
accomplish neither of those goals.
So you need a strong, strategic logic to combine those multiple objectives.
Finally, I think that it captures what really is the fundamental challenge of
strategy as how can we capture these valuable,
defendable competitive positions?
That's what strategy is all about.