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Positioning
Approach
- We are in Alternative
Strategic Formulation
- Positioning Approach takes the view that Competitive advantage
stems from organisation's position in relation to its competitors
and markets
- It is also called
OUTSIDE IN view
- It is because the organisation tries
to adapt itself to its enviroment
- In this way the organisation can control
changes rather than having to react to
them
- For all these reasons, the organisation needs to analyse
and understand in depth its enviroment and it happens with
the use of the following tools
- PEST
- Porter Five Forces
- Competitor Analysis
- PEST
- It is because the organisation tries
to adapt itself to its enviroment
- for Posistionig Approach, Supernormal
Profits can be achieved throughout one of
the following strategies
- A. High Market share relative to its competitors
- B. Differentiated products/services
- C. Relatively low costs
- A. High Market share relative to its competitors
- Disadvantages
- It relies on predictions of future Markets
- Competitive Advantage is not always
sustainable and it can be copy by
competitors
- The external enviroment is too dynamic to
enable positioning to be effective
- The Structure of an organisation is
not that flexible to adapt itself to the
market
- It relies on predictions of future Markets
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