By answering the question of strategic positioning, it determines which customers the company provides with what products and services, that is, it clarifies what the company does and does not do. Many companies fail because the development direction is not clear, and they can't concentrate their limited resources on specific target customers and products, which leads to the company consuming resources and delaying favorable development opportunities.
Unclear development direction or frequent changes will easily lead to employees' fatigue and lack of sense of accomplishment, which will ultimately affect employees' enthusiasm and initiative.
In addition, the unclear orientation of the company's development direction will easily lead customers and partners to doubt the company's professionalism and sustainability, thus affecting the sales of the company's products and the support of partners.
2. Strategic positioning determines the company's resource allocation.
The resources of any company are limited, and the company must concentrate the limited resources on the things that can produce the greatest return. Company resources mainly include capital, equipment, workshop, brand, cooperative relationship and human resources. In particular, improper use and investment of human resources will have a very serious negative impact on the development of the company. Target market positioning determines the resources that the company should invest in marketing, sales and service; Product positioning determines the resources that the company should invest in R&D and production. The positioning of business model determines the resources that the company should invest in all internal process links of cooperation with partners.
Strategic positioning requires the company's operating mechanism, including business system, key resource capacity, profit model, cash flow structure and so on.
3. Strategic positioning determines the company's business decision.
Without a clear strategic positioning, the company's relevant decisions may deviate from the right direction, and some decisions will be contradictory. Strategic positioning decision is the premise and foundation of all other decisions of the company and the source of strategic performance of the company. Correct strategic positioning will ensure that the company obtains and maintains its business advantages at the lowest possible cost and achieves its development goals; Wrong strategic positioning can easily make the company make a series of inefficient and even contradictory business decisions, waste the company's precious resources, affect the company's strategic performance, and even endanger the company's survival.