Competitive Position - Meaning, Factors & Example

Published by MBA Skool Team, Last Updated: September 02, 2021

What is Competitive Position?

Competitive Position is the position that a firm has already acquired or is trying to acquire, relative to its competitor in the market through its marketing strategy. 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.

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

Competitive Position Factors

Competitive Position 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


Competitive Position Example

Samsung competes in the smartphone market to become the number one smartphone company. It uses different strategies to achieve that position. As per the recent market trends, Samsung is on the top position in the smartphone market along with its competitors.

Hence, this concludes the definition of Competitive Position along with its overview.

This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

Browse the definition and meaning of more similar terms. The Management Dictionary covers over 2000 business concepts from 5 categories.

Continue Reading:



Share this Page on:
Facebook ShareTweetShare on Linkedin