Competitive Position

Posted in Marketing and Strategy Terms, Total Reads: 493

Definition: Competitive Position

It is the position that a firm has already acquired or is trying to acquire, relative to its competitor. A competitive position gives a firm an advantage over its competitors, thus allowing it to retain/attract more customers, gain mindshare of customers and market share etc.

It is affected by four factors:

• Market profile: Size of the market, competitors, stage of growth etc.

• Customer segments: Segmentation on Demographic, Geographic, Psychographic and Behavioral variables. Customers with similar needs are grouped together

• Competitive analysis: SWOT analysis (Strength, weakness, opportunities and threat)

• Unique Value Proposition: What unique value you have got to offer to your customers and how you’ll deliver it to them

A firm is said to have an acquired competitive position if

• Prices are competitive and attract customers

• Product and service quality is better than competitors

• The firm is seen as a preferred choice over another

• Market share is constantly increasing


For example: Johnson’s & Johnson’s catering specifically to babies need gives it an edge over others. Parent’s first choice for their babies is always Johnson’s and Johnson’s product.



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