Competitive Position

Posted in Marketing and Strategy Terms, Total Reads: 9756

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.


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

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