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Positioning evolution: strategy after positioning strategy failure
In the wake of a successful positioning strategy and strong company performance, continuing to strictly follow the business focus, operational alignment, and opportunity selection dictated by positioning rules, it's still possible for companies to face a gradual decline in performance and a fading brand presence. This situation has led many to question whether positioning as a long-term strategy can truly stand the test of time. If it cannot, then what hope is there for achieving sustainable growth and long-term success?
A true long-term strategy should be visionary, stable, and forward-looking—like a lighthouse guiding a ship through stormy seas. Does the "positioning strategy" have such capabilities? If not, will it become merely a temporary tactical move with limited significance? Can a century-old enterprise maintain its competitive edge over 100 years, or will it eventually fall behind?
This raises an important question: Should the concept of "changing strategy" take precedence over "positioning strategy"? The answer lies in real-world examples. Some well-known companies that have endured for over a century have undergone major shifts in their business focus and strategies. IBM, for instance, transformed itself multiple times before reaching its current position. Many once-powerful companies failed to adapt and disappeared.
Yet, in today’s fast-paced and ever-changing environment, the idea of change has become deeply embedded in corporate culture. Many companies chase trends relentlessly, adapting quickly to every new market movement. However, despite these efforts, they often fail to achieve lasting success. In contrast, those who stay focused on their positioning—despite being out of fashion—often end up dominating the market.
This leads to a dilemma: Should entrepreneurs prioritize strategic transformation or stick to a clear positioning? How can a company aiming for long-term success craft the right strategy? And how can businesses balance positioning with change in an uncertain future?
To address this, we must explore the relationship between direction and change. Positioning, at its core, is about focusing resources to occupy a key place in the minds of consumers. It aligns with principles of concentration and specialization, making it a powerful tool in competitive markets. When executed well, it allows companies to build a strong, distinct identity and secure a dominant market position.
However, no positioning strategy is immune to change. As technology evolves and consumer preferences shift, even the most successful positions can lose relevance. The rise of the iPhone disrupted traditional phone manufacturers, and Kodak’s failure to adapt to digital photography led to its downfall. These examples show that while positioning can create a strong foundation, it must evolve to survive.
Ultimately, the challenge for modern enterprises is to find the right balance between stability and flexibility. A strong positioning strategy provides direction, but without the ability to adapt, even the best strategies can become obsolete. The key lies in understanding when to hold firm and when to pivot—ensuring long-term survival in a constantly changing world.