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
1. It is because the organisation tries to adapt itself to its enviroment
2. In this way the organisation can control changes rather than having to react to them
3. 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
  1. PEST
  2. Porter Five Forces
  3. Competitor Analysis
for Posistionig Approach, Supernormal Profits can be achieved throughout one of the following strategies
1. A. High Market share relative to its competitors
2. B. Differentiated products/services
3. C. Relatively low costs
Disadvantages
1. It relies on predictions of future Markets
2. Competitive Advantage is not always sustainable and it can be copy by competitors
3. The external enviroment is too dynamic to enable positioning to be effective
4. The Structure of an organisation is not that flexible to adapt itself to the market

Resource summary

	Created by giugam almost 11 years ago