How do you identify your strategic position in the competitive landscape?

How do you identify your strategic position in the competitive landscape? This is a crucial question for any business that wants to achieve sustainable growth and competitive advantage. In this article, you will learn how to use some practical tools and frameworks to analyze your external and internal environment, identify your strengths and weaknesses, and define your value proposition and differentiation.

1 What is strategic position?

Strategic position is the place that your business occupies in the market relative to your competitors. It reflects how you create value for your customers, how you compete on price and quality, and how you leverage your resources and capabilities. Your strategic position should be aligned with your vision, mission, and goals, and should be based on a clear understanding of your industry, customers, and competitors.

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Michael Liu

I build companies and communities | CEO and Founder | Director Non-Profit - Aceocial | Co-Chair - Toronto Tech Fest | Techstars LA '21
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How you determine your strategic position will be heavily influenced by what market you enter into. If you enter a highly competitive market the benefit is that you can be sure there is a demand for a solution. Since the value propositions and use cases are well known, you can focus on being the best option for customers (faster, cheaper, higher quality, etc.). However, since everyone also knows what you know, the challenge is to stand out from the crowd. If you enter a market with no competitors, there usually is a reason why (regulatory, technological, etc.). The challenge here is to spend resources to discover what people really care about, and educate them that your solution solves their problem. The prize is a first mover advantage.

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Aldo Segnini

AI Adoption & Digital Transformation Expert | Empowering Businesses with Scalable AI Solutions | +25 Years Driving Data-Driven Innovation | Startup Advisor | Enabling AI as a Service (EaaS)
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Identifying your strategic position in the competitive landscape is essential for achieving sustainable growth and competitive advantage. Your strategic position is where your business stands in the market compared to competitors. It encompasses how you deliver value to customers, compete on price and quality, and leverage your resources and capabilities. To determine your strategic position, align it with your vision, mission, and goals, and gain a deep understanding of your industry, customers, and competitors. Using practical tools and frameworks can help you analyze your external and internal environment, identify strengths and weaknesses, and define your value proposition and differentiation.

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2 How to analyze your industry?

One of the most widely used tools for analyzing your industry is Porter's Five Forces model. This model helps you evaluate the attractiveness and profitability of your industry by examining five key factors: the threat of new entrants, the bargaining power of suppliers, the bargaining power of buyers, the threat of substitute products or services, and the intensity of rivalry among existing competitors. By applying this model, you can identify the opportunities and threats in your industry, and the forces that shape your competitive landscape.

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Artem Martin

AdTech VC, M&A, JV, growth hacking
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In my opinion, the most important thing for analyzing an industry is having relevant, verified data. If the data is not "good" or the source is not trustworthy, the analysis is doomed to be useless. It would be the proverbial "garbage in - garbage out" situation. That's why in my work, I put 80% of my effort into gathering the right data from verified sources.

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3 How to analyze your customers?

Another essential tool for identifying your strategic position is customer segmentation. Customer segmentation is the process of dividing your target market into smaller groups of customers who share similar characteristics, needs, preferences, and behaviors. By segmenting your customers, you can tailor your products, services, marketing, and communication to each group, and increase your customer satisfaction, loyalty, and retention. You can use various criteria to segment your customers, such as demographics, psychographics, geography, lifestyle, behavior, or benefits sought.

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Sarah B.

CEO • The Neuroscientist / AI Builder • Global Keynote & TED Speaker • Investor, 5x Founder, 2 Exits • Author • Media Contributor: NBC, CTV, FOX • "System Zero" Podcast Co-Host • Ex-CGI & Ex-Deloitte •
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Consider re-evaluating whether your product ACTUALLY is meeting the current consumer needs of today? When was the last time you engaged in customer journey mapping? Review current client needs and metrics for satisfaction Look at your competitors at least once a month rather than quarterly - regardless of your industry, tech is transforming your competitive landscape much faster than was historically the reality Consider your use of advanced personalization if you’re in the services industry - how are you incorporating predictive analytics to effectively future proof your business

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4 How to analyze your competitors?

To identify your strategic position, you also need to know who your competitors are, what they offer, and how they perform. A useful tool for analyzing your competitors is the SWOT analysis. SWOT stands for strengths, weaknesses, opportunities, and threats. By conducting a SWOT analysis for each of your main competitors, you can assess their competitive advantages and disadvantages, their strategic objectives and actions, and their potential responses to your moves. You can also use a SWOT analysis to evaluate your own business and identify your areas of improvement.

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5 How to define your value proposition?

Your value proposition is the core of your strategic position. It is the statement that summarizes why customers should choose your products or services over those of your competitors. It describes the unique benefits that you offer to your customers, the problems that you solve for them, and the reasons why you are different from your competitors. Your value proposition should be clear, concise, and compelling, and should be communicated consistently across all your channels and touchpoints.

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6 How to differentiate your business?

Differentiation is the strategy of creating a distinct identity for your business in the market by offering something that your competitors cannot or do not offer. Differentiation can be based on various factors, such as product features, quality, design, innovation, customer service, brand image, social responsibility, or niche focus. Differentiation can help you attract and retain customers, charge premium prices, and build a loyal fan base. However, differentiation also requires constant innovation, investment, and adaptation to changing customer needs and preferences.

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7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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How do you identify your strategic position in the competitive landscape?

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1 What is strategic position?

2 How to analyze your industry?

3 How to analyze your customers?

4 How to analyze your competitors?

5 How to define your value proposition?

6 How to differentiate your business?

7 Here’s what else to consider

Business Strategy

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How do you identify your strategic position in the competitive landscape?

1

2

3

4

5

6

7

1 What is strategic position?

2 How to analyze your industry?

3 How to analyze your customers?

4 How to analyze your competitors?

5 How to define your value proposition?

6 How to differentiate your business?

7 Here’s what else to consider

Business Strategy

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