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Guidelines for Competitive Positioning. Differentiate to dominate The competition is any alternative that meets the need. The bigger the market, the more expertise required. (Assume the industries best are also engaging the market). Perception is fact
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Guidelines for Competitive Positioning • Differentiate to dominate • The competition is any alternative that meets the need. • The bigger the market, the more expertise required. (Assume the industries best are also engaging the market). • Perception is fact • Know the “center of gravity “, the primary value proposition, in your value chain and broaden value from there. (Every functional organization contributes to value).
Examples of Defensible Boundaries • Making your strengths a marketing issue • Leveraging your Economies of Scale • Capital requirements • Establishing & protecting Intellectual Property • Increasing the customers cost of change • Leveraging third parties to add to your value proposition (i.e SW applications sell hardware). • Turning competitors into customers • Obsolescing your own products
Caution- Defensible Boundaries • Betting on your competitor failing is not a strategy to differentiate. • Patents do not keep competitors from entering your space. • A stronger feature set is not a defensible boundary • Don’t assume your competitors are striving to achieve incremental change.
Porter’s Positioning Maps Week Strong Features Importance* Position Comfort 7.0 C1 C2 T Components 6.2 C1 C2 T Weight 5.1 C1 C2 T Service 4.7 T C2 C1 Cost 3.9 T C2 C1 *As determined using third party research
