Competitive positioning is all about defining a way for you to differentiate your product and make exceptional value for the marketplace. It is all about carving out a unique position in the competitive environment and focusing your business/products/service to deliver precisely on this strategy. When people think of positioning, they often think of products, services or offers in one particular vertical. However, in reality, all of these verticals offer a full range of advantages.
For example, when you look at how the automotive industry has developed over recent years, you will see that the automotive industry has developed in such a way that it has become a non-traditional and niche sector with very little in the way of a traditional product offering. In fact, many of the sales professionals are now salespersons who have built their careers selling nothing but extended warranties. The reason for this is that it has become unprofitable for an automaker to produce a high volume car; the sales team selling the same car as the customer, which was the traditional customer, are not making the sales. The salespersons are now focused on building a clientele and expanding their clientele base rather than increasing the volume of cars. This is a key competitive analysis step for sales teams across any organization.
Another example is the growing digital media and technology sector. There are many companies who have developed technologies that are unique and can be applied in new markets that might not have been thought of before. The reason for this is that digital media and technology offer a wide range of possibilities. Many of the new opportunities are not going to be available to companies simply because they are not looking in the right place. If you are aware of where the competition is coming from and planning in accordance with this competitive positioning, then you can ensure that you will have new opportunities open to you and your organisation that might not have been there before.
The last example I will discuss is one related to organisations providing commercial vehicles. Many of these businesses provide the same products and services to other businesses in their sector, but a significant difference is that their overall costs are lower. These businesses need to be able to differentiate themselves in order to remain competitive. If you look at the competitive positioning of your competitors and how they manage to stay financially sound, then you will notice that they often deliver value to their customers and operate within a stable financial environment. In contrast, you may be a company that delivers low-value to consumers, and therefore you need to determine what you can do to differentiate yourself in order to offer consumers value and ensure that you deliver a quality and consistent service.
Competitive positioning can be a very difficult thing to do, especially if you have no formal training or industry experience. The good news is that there are many companies that provide you with the competitive positioning services that you need in order to properly execute your business strategy. Competitive positioning consultants are experienced and knowledgeable business strategists who are able to provide you with the information that you need in order to make effective decisions about your company’s future and position within the current competitive landscape. When choosing a competitive positioning consultant, it is important that you do your due diligence and understand exactly what they are going to do for your business. It is better to hire a consultant that is well-versed in your industry than to hire an inexperience consultant who may not have the knowledge or skills to create a robust competitive positioning strategy for your company.
The purpose of competitive positioning is to build a company or organisation’s advantage in order to compete with other businesses within the same sector. There are five key values or mindshare elements associated with mindshare that all successful competitive positioning strategies must incorporate. These elements include a competitive advantage, customer value propositions, a differentiation strategy, a mission statement and a strategy alignment. All of these elements build on each other and work together to ensure that you are providing your customers with products and services that deliver value to them in every area of their life. Just remember that the process of competitive positioning does not stop when you have defined your competitors. You need to constantly evaluate your competitors and devise a strategy to ensure that you are always on the top of their mind.