Competitive Position

Definition

Competitive position refers to the position of one business relative to others in the same industry. There are a multitude of factors contributing to (and which can be used to measure) competition. The major categories are:

  1. Market position— relative share of market, rate of change of share, variability of share across segments, perceived differentiation of quality/service/price, breadth of product, and company images
  2. Economic and technological position — relative cost position, capacity utilization, technological position, and patented technology, product or process
  3. Capabilities — management strength and depth, marketing strength, distribution system, labor relations, relationships with regulators[1]

 

References

  1. ^ American Marketing Association, AMA Dictionary. (May 2015)

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