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Positioning evolution: strategy after positioning strategy failure
In the wake of successful implementation of a positioning strategy and strong company performance, it is crucial to maintain focus on core business operations, align with market opportunities, and stick to the principles that define the positioning strategy. However, despite these efforts, many companies still find themselves in a situation where their performance gradually declines and their brand becomes less relevant—leading to what has become known as the "positioning strategy" controversy.
This raises an important question: Can a positioning strategy truly stand the test of time? If not, can it still serve as a long-term, stable, and forward-looking strategy for sustainable enterprise growth? A solid strategy should act as a guiding beacon, leading the ship through uncertain waters. Does the "positioning strategy" possess such capability? If not, could it simply be a short-term tactical move rather than a long-term strategic foundation?
Many century-old enterprises have survived by making significant changes in their business focus and operations. For example, IBM underwent multiple transformations before finding its current path, while other similarly strong companies failed to adapt and disappeared. This suggests that flexibility and change are essential for long-term survival.
Yet, in today’s fast-paced and ever-changing environment, many companies chase trends relentlessly, trying to keep up with every new fad. They change their strategies like changing clothes, chasing whatever is popular at the moment. However, despite all this effort, they often fail to achieve lasting success. Meanwhile, those who remain focused on their positioning—despite being out of fashion—often end up dominating the market.
This creates a dilemma for entrepreneurs: which approach is more effective—the transformational strategy or the positioning strategy? How can a company aiming for long-term success develop a balanced approach that allows it to adapt without losing its core identity?
The key lies in understanding the dynamic relationship between positioning and change. Positioning, at its core, is about creating a clear and powerful place in the minds of consumers. It involves concentrating resources and focusing on a specific market segment to build a strong competitive advantage. When done effectively, it enables a company to dominate its industry, as seen with brands like Coca-Cola, Google, and Apple.
However, no positioning strategy is immune to change. Market conditions evolve, consumer preferences shift, and technological advancements disrupt industries. Even the most successful positioning strategies can lose their effectiveness over time. The rise of smartphones, for instance, dramatically changed the mobile phone market, threatening the dominance of traditional players like Nokia.
Similarly, the shift towards health-conscious consumption impacted the cola industry, and the digital revolution left Kodak and Fuji struggling to keep up. These examples highlight how even the most well-positioned companies can fall behind if they fail to adapt.
Thus, the challenge for modern businesses is not just to position themselves effectively but also to remain agile enough to respond to change. A balance must be struck between maintaining a clear identity and embracing innovation. Only then can companies ensure long-term survival and continued relevance in an unpredictable world.