Strategic position

Strategic position
See also

Strategic position is the position of the business in relation to market and competitors. In order to achieve certain strategic position managers analyze the environment and the company (e.g. using TOWS analysis), then they create mission and vision of the company, and strategic objectives. Achievement of strategic objectives is possible through realization of different projects (related to marketing, production, etc.). If the objectives are fully achieved, the company takes planned strategic position.

Taking the strategic position is a bit more complicated, as at the same time competitors do the same and the market changes (new requirements of customers, change of fashion, alternative goods become available). Therefore, taking strategic position is a long process that involves many changes and adjustments.

SWOT Strategic Analysis[edit]

SWOT analysis is a structured approach to assessing the strategic position of an enterprise by identifying its strengths, weaknesses, opportunities and threats. Internal strengths and weaknesses are evaluated in terms of external opportunities and threats. It is a comprehensive method used to study the organization environment and analyze its interior. It also includes suggestions on how to conduct strategic analysis and take its results into account in strategic planning. All factors shaping changes in the organization may be beneficial or not conducive to change. We can distinguish internal and external factors here.

Clashing opportunities and threats with the strengths and weaknesses of the company allows to determine its strategic position. Properly made SWOT analysis creates an opportunity to use the strengths of the company and avoid weaknesses in areas where opportunities and protection against threats arise. [1]

Components of Positioning Strategy[edit]

  • customer targets - Customers are differ in some aspects. The target customer is the person who is most likely to buy products. This is a much more segmented part of the target market because some aspects of this person have been identified. This may include a specific age, not a range, a specific level of income compared to a large group of income types, and the reasons why these customers most often buy your products.
  • competitor targets - The aim of the competition is to thoroughly get to know both current and potential competitors. The competition can be implemented in various ways. This manifests itself in an offensive or defensive attitude towards competitors and in the use of customary methods of competing in the given environment or methods that break the existing customs.
  • competitive advantage - A marketing strategy for competitive advantage must enable the company to produce goods or services at the same value at a lower price or in a more desirable manner. These conditions allow the production entity to generate more sales or better margins compared to its market rivals. If the company achieves a competitive advantage, it thus increases its freedom in the field of operating with prices and other instruments related to the material interests of buyers. [2]

Brand Positioning Strategy[edit]

Brand positioning is a specially designed marketing strategy, thanks to which it is possible to highlight the features of a given brand and its offer in comparison with the competition. Positioning is conducted on the basis of a given target group of clients, offer features, its category, origin, price, distribution channels and communication, as well as other types of parameters that allow the brand to be distinguished.

Brand positioning should not be carried out chaotically, but choose its various parameters. The most important thing is to choose one parameter around which you can build the whole concept. The more complex the positioning concept, the more difficult it is to achieve the intended goal. The simple definition of a brand allows it to be easily remembered by potential customers. It is necessary to carry out appropriate market research and on this basis determine the clients' needs. Thanks to this, you can stand out against the background of competing brands, while not copying their ideas.[3]

Effects of positioning strategy[edit]

  • technology development - New technology helps dynamically plan new locations, evaluate their performance, provide customers attitude to new offered products and services. With electronic technology and machines being produced and improved all the time, it was very likely that along with the positive aspects of these new advancements, people would also consider the negative aspects and look to criticise new technology.
  • Classification customer - The process of splitting customers into different group with similar level of interest. Choosing between competing products and services, customers select the proposition that meets their needs better than any other. The company must ensure that their offers is better than any other.
  • Brand benefits - The brand must be a persevering, unique and business identity.The designation of an effective and catchy company name helps clients to remind themselves of its existence. [4]



  1. Radha Balamuralikrishna, John C. Dugger (1995), 1-6
  2. Roger Brooksbank, (1994), 10-13
  3. Patrick Hartmann, Vanessa Apoalaza Ibanez and F. Javier Forcada Sainz, 10-15
  4. Asaph Ngetha Kamau, Moses Kimani Wafula (2015), 2-5

Author: Weronika Góra