This document discusses the importance of market positioning strategy for businesses. It notes that many startups fail to recognize their position in the market, align with their core competencies, or adequately communicate their key benefits. This can force companies to compete mainly on price. The document recommends that companies determine their core competencies and use them to position themselves as either differentiated, low-cost, or niche players. It outlines a four-step process to identify core competencies, ensure they are competitive, map activities to the competencies, and thereby develop a strong positioning strategy.

1. What is your brand’s
POSITION ING
market positioning
strategy?
Have you thought
about it?

2. But why do we need a positioning strategy?
Our business environment is ever-changing
…and who cares?

3. Mistake that most start-ups make
• Fail to recognize their position within a market
• Fail to align with their core competences
• The most important distinguishing benefit(s) of
their offer is/are inadequately communicated
• Forced to compete mainly on price
• An inevitable drift towards selling
products/services with little or no margins

4. Says who?
Michael Porter argues that there are
distinct competences that are crucial
to a business’ success. He suggests
that companies can use these core
competences to position themselves
as differentiated, low-cost or playing
within a niche.
Determining where a company stands
in terms of these competences is
critical as the worst position is in the
middle where you do not have a
distinct identity.

6. Check whether your
Brainstorm & identify
competencies are
core competencies
competitive enough
Map your activities
Identify measures to with your core
achieve them competencies

7. STEP 1 Identify core competency
Identify what your clients would consider the key reasons
of your success (perceived value of your company
offerings)
Keeping in mind
• How necessary the competence is to clients
• How difficult is the competence for your competitors to
imitate
{brainstorming session}

8. STEP 2 Check whether your competencies are
competent enough
1. Competitive Advantage Matrix (based on the ‘5
Forces’ model)
2. Competitor Analysis

9. STEP 2.1 Competitive Advantage Matrix
Cost Leadership Differentiation Focus
Threat of new
entrants
Threat of substitute
products
Client bargaining
power
Vendor bargaining
power
Rivalry within the
industry

10. STEP 2.2 Competitor Analysis
Strengths Weaknesses Your take
Competitor 1
Competitor 2
Competitor 3

11. STEP 3 Measures to achieve these
competencies
Identify measures to be taken to achieve these core
competencies
Example
Efficient Client Service – On time delivery, quick response
& quick problem solving
Affordable pricing – Right cost & right price
High quality – Low quality defects, no client complaints &
strict quality standard

12. STEP 4 Map your activities with your
core competencies
Source: IKEA
Now that you have identified your core competencies map all your
activities to these to create well-knit Activity Map

13. DONE
Now you are positioned well and know that your competencies are
…actually your own
@namit_agarwal