Strategic Positioning

Strategic positioning

A method to create a competitive advantage in a market by performing different activities or performing similar activities in different ways compared to rivals.

Consumer willingness to pay

The maximum price a consumer is willing to spend for a product or service.

Supplier willingness to sell

The lowest price at which a supplier is willing to provide a product or service.

Cost leadership

A business strategy aimed at achieving the lowest operational costs in an industry while providing adequate value.

Differentiation strategy

A strategy that increases the perceived value of a product or service while managing costs effectively.

Blue Ocean Strategy

A market strategy focused on creating new, uncontested market space, rather than competing in existing industries.

Operational Effectiveness

Performing similar activities better than rivals but not necessarily achieving a competitive advantage.

Trade-offs in strategy

The necessity to choose what to do and what not to do to maintain a sustainable competitive position.

Value drivers in differentiation strategy

Factors that enhance the perceived value of a product, such as quality, features, and customer service.

Cost drivers in cost-leadership strategy

Elements that affect the costs of inputs, economies of scale, learning curves, and experience curves in a business.