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Overview Positional StrategyPositional 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. |