Competitive Positioning

What is it?

Your competitive position describes how you compare to the competition in a specific market. It is usually used for comparisons across segments or across business units for multibusiness companies.

When is it useful?

Competitive position is used as one dimension of the BCG and McKinsey matrices. It is usually based on the assumption that companies should earn superior profits where they have a strong competitive position.

An Example?

How do you do the analysis?

The competitive position is measured by market share – are you the dominant leader, one amongst peers or a small player? The market share trend should also be considered as well as industry specific factors – e.g. brand equity, product differentiation, customer loyalty.

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How can you adapt this concept?