Strategic Positioning Essay Example | Topics and Well Written Essays - 750 words

Strategic Positioning - Essay ExampleA company with the aim of increase competitive payoff becomes operationally effective from its rivals and produces extreme level of scotch value by gaining advantage of cost or price premium in a distinct way. Competition exists among the companies through the lucre for operational effectiveness. A company needs to develop distinctive strategic path in an exploit to be one step forward in this highly competitive world. Before implementing system a company provides emphasis on profitableness besides growth. The company ought to improve its distinctive positioning make up during the time of turmoil. The value chain needs to be highly integrated. A company needs to make up the six basic principles of strategic positioning with a view to maintain the distinctive positioning of strategy. The number 1 principle is the right goal, which means higher return on long term investment. The economic value will be generated in sustained productivity a s well as profitability by implementing strategy. The value of the economy is micturated when customer prices for the product exceed production cost. In the second proposition, the strategy of the company enables to set value proposition which is different from that of competitors. ... This not only stimulates competitive advantage exactly make a strategy that is tough to replicate. The sixth or the last strategy is continuity of thinking without it a company may not be able to develop distinctive skills and resources or create strong reputation with the customers (Michael Porter, 2001). dodge positioning considers the diligence structure of the organisation as a chance upon independent variable in strategic analysis. The effective performance of the industry is based on the strategy fit of the firm. The strategist identified the three generic strategies such as differentiation, low cost and focus from which one that fits the industry structure will be selected. The templates supplied by five forces find out the attractiveness of an industry. The industry attractiveness is depended on the five forces including power of buyer, power of supplier, substitutes threats, threat of untried entrance and intensity of rivalry among incumbents as a result revenue will be high. Strategy as positioning balances both strategies as planning as well as SWOT. It offered a technique that allowed in making accurate analysis of one of the key sections of the external environment of the industry (Business Strategy Review, 2003). 2.0 Criticisms The operational effectiveness associated with competition in a company leads to destructiveness and conflict for attrition. This will freeze the competition among the companies (Nirgudka, 2002). The models of Michael Porter are not valuable for strategy development and it has become useless bill from the managers tool box. This model can be best suitable in companies with freshly and traditional technique of management. Michael Po rter is of the opinion