How It Works
How It Works
Overview
Positional Strategy
Expansion
Strategy
Situational Strategy
Strategic
Innovation Overview
Positional Strategy
Positional strategy provides a framework for understanding strategic
positions. It defines a competitive "position" as an area of control
within a competitive environment.
Seeing strategic positions requires the perspective of a broad range of
viewpoints. Each individual has a unique viewpoint, but every viewpoint is
inherently limited by its own position. The result is that people cannot get a
useful perspective on their own situations and surrounding opportunities
without getting information from others. The first techniques of positional strategy
involve learning what information to gather. The most advanced techniques
teach how to
gather it.
A
strategic position is defined as a matrix of five factors. The elements of
"climate" and "ground" define a specific time and place in the competitive environment. They
account for what is changing and what resources are available. The elements that
define control are called "command" and "methods." Command is your ability to
make decisions. Methods are your skills in working with others. Connecting
these four elements is the fifth element, called "mission" or philosophy, which
defines a core set of goals and values. Mastering strategy means analyzing all positions
quickly in terms of these five elements.
Positional analysis compares the relative characteristics of these five
factors to understand the strengths and weaknesses of a given strategic
position. In classical strategy, all such comparisons are relative. A
position is not strong or weak in itself. Its strength or weakness depends
on how it compares or "fits" with surrounding positions. In classical
strategy, the complex idea of competitive "fitness" is reduced to a
limited set of simple comparisons.
Each of these five factors is compared based on significant characteristics. Classical strategy has a specialized
vocabulary for discussing those characteristics and their results.
For example, the characteristics of mission can produce "unity" and
"focus." Ground is defined not only by its shape and substance but by
distance, obstacles, and dangers—the physical components of a position
that give it stability and resources. Command is determined by five
characteristics: intelligence, courage, trustworthiness, caring, and
discipline. Each of these terms has a well-defined meaning that, once
understood, greatly simplifies the making of competitive comparisons.
Positional strategy also includes specialized tools such as the
Positional Analysis Matrix (PAM). This matrix is a specialized system for
mapping the relative positions of a given set of competitors. The PAM
condenses a five-dimensional comparison into a simplified two-dimensional
view. A solid understanding of competitive positions is required before
attempting any form of expansion
strategy. |
