Market success requirements, capability requirements and positioning: A tool for identification and linking

Publisher:
The Business Review
Publication Type:
Journal Article
Citation:
The Business Review, Cambridge, 2008, 11 (1), pp. 26 - 31
Issue Date:
2008-01
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To choose a competitive position, firms must have a clear understanding of: 1) the specific market deliverables required to fulfill consumer expectations of the position, and 2) the corresponding assets and capabilities required for a business unit to fulfill those expectations. The firm must then determine whether there is a fit between the positional opportunity and organizational capabilities in terms of their ability to achieve the desired position in the market. In this paper, a tool is proposed to aid organizations in making these strategic assessments. The tool incorporates choice modeling to identify specific market drivers required to achieve a position and also incorporates systems dynamics to identify the specific assets necessary to deliver the drivers. Finally, the tool links the market needs and required assets to model the entire value delivery system and to identify interactions. The model can be used to assess and compare the relative fit of various positions under consideration, as well as to simulate the effects of investments in specific assets on the achievement of market positions. Thus, it enables firms to systematically assess the overall fit of various positions to the firm's capabilities and determine their relative likelihood along with the investment costs of success
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