Strategic Positioning
At general management’s core is strategy: defining a company's position, making trade-offs and forging fit among activities.
Principle #1: Strategy is the creation of a unique and valuable position, involving a different set of activities - serving few needs of many customers & serving broad needs of few customers.
Principle #2: Strategy requires you to make trade-offs in competing to choose what not to do - you cannot do all things to all people, focus on developing a solution and a brand that is meaningful and consistent to customers. Emphasize serving one market well and explore growth opportunities later.
Principle #3: Strategy involves creating a 'fit' among a company's activities - company’s activities must reinforce one another. For example, Nordstrom’s higher cost matches with personalized service. Fit drives competitive advantage and sustainability. Competitors struggle to imitate well-developed activities.
Principle #1: Strategy is the creation of a unique and valuable position, involving a different set of activities - serving few needs of many customers & serving broad needs of few customers.
Principle #2: Strategy requires you to make trade-offs in competing to choose what not to do - you cannot do all things to all people, focus on developing a solution and a brand that is meaningful and consistent to customers. Emphasize serving one market well and explore growth opportunities later.
Principle #3: Strategy involves creating a 'fit' among a company's activities - company’s activities must reinforce one another. For example, Nordstrom’s higher cost matches with personalized service. Fit drives competitive advantage and sustainability. Competitors struggle to imitate well-developed activities.
This blog post is based on my learnings from the course on ‘entrepreneurship’ offered by Maryland Technology Enterprise Institute, University of Maryland through Coursera (2014).
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