Positions and positioning: strategy simply stated

Abstract

Purpose

The purpose of this paper is to focus on the four strategy tools of positions and positioning: leader, challenger, follower and niche. It suggests that it is important for managers to understand where their business fits in the market, vis‐à‐vis the competition. Without this knowledge, it is difficult to identify a differential advantage that will give the necessary competitive edge to attract the target customer.

Design/methodology/approach

This paper reviews positioning using a back to basics explanation. A simply constructed matrix – represented by variables: company‐focused or competition‐focused and pushes the boundaries or stays within boundaries – illustrates business philosophy in the marketplace.

Findings

Airlines positioned in the United Arab Emirates (UAE) aviation industry exemplify a market environment with companies holding distinctive positions. Emirates Airline is the leader, Etihad Airways is the challenger, Gulf Air is the follower and Air Arabia is successfully established in the niche position. A summary explanation of business operations for each airline supports the discussion.

Practical implications

Marketing practice aligned with textbook theory is identified in the growth‐oriented UAE aviation industry. In real‐world terms, four airlines distinctively hold each of the four positions while a fifth airline is making inroads into the regional market and appears to be challenging the current challenger.

Originality/value

The strategy simply stated in this paper suggests that the market environment is dynamic and constant assessment is necessary. Managers seeking to maximize differential advantage vis‐à‐vis the competition should consider using more than one strategy tool particularly if it contributes to a manager's ability to understand the market environment.

Citation

McKechnie, D.S., Grant, J. and Katsioloudes, M. (2008), "Positions and positioning: strategy simply stated", Business Strategy Series, Vol. 9 No. 5, pp. 224-230. https://doi.org/10.1108/17515630810906729