University | Harvard Business School (HBS) |
Subject | Aviation Strategic Management |
Aviation Strategic Management Essay, HBS, Singapore It is important for managers to understand where their business fits in the market, vis-a`-vis the competition
Introduction
It is important for managers to understand where their business fits in the market, vis-a`-vis the competition. Without this knowledge, it is difficult to identify a differential advantage that will give the necessary competitive edge to attract the target customer. This is straightforward logic yet many managers may be unlikely to review the market environment in which their business operates, which includes positioning the competitors’ business as well.
This paper focuses on the strategic tools of positions and positioning. The four positions are:
1. Leader.
2. Challenger.
3. Follower.
4. Niche.
Although, not all markets have businesses that fit neatly into one of the four categories, being able to distinguish one’s own business position and certainly where it relates to the competition is important management knowledge. This discussion reviews positioning using a back to basics explanation and a simply constructed matrix. Whether a business is company-focused or competition-focused is noted on the x-axis. The y-axis variables are labeled pushes the boundaries and staying within boundaries. Airlines positioned in the United Arab Emirates (UAE) aviation industry exemplify a market environment with companies holding distinctive positions.
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