Posted in Marketing and Strategy Terms, Total Reads: 2038
Definition: Competitive Position Tactics Chart
Successful companies today have to not only be concerned of what they are doing but also what their competitors are doing. They need to constantly keep a check of their positioning with respect to the competitors.
Position charts or maps are one such technique. These charts are used to depict the developments that a firm undergoes and what could be the potential competitor responses to those. The charts can have two or three attributes i.e. they can be two or three dimensional. These attributes could be return on assets, relative market share, etc.
The above chart represents the position of various consumer electronic companies with respect to their relative costs and degree of differentiation.
Eg – These charts are particularly useful in case of competition aggressive industries like the hotel industry, airline industry, FMCG, etc. These industries not only need to know their positioning with respect to competition but also the threats they may face in future due to their competitors. They may do so by mapping their market share with respect to competitor’s market share or by the ROI, etc.