This tool is for leaders who want to understand the six principles of successful strategic positioning. It ensures that leaders are asking the right questions about the overall goals of the company, its business model, and the value that the company creates. Research has shown that companies that follow these six fundamental principles establish and maintain a distinctive strategic position. (2 pages)
The company must have the right goal, which is superior long-term return on investment. Only by grounding strategy in sustained profitability will real economic value be generated. Economic value is created when customers are willing to pay a price for a product or service that exceeds the cost of producing it. When goals are defined in terms of volume or market share leadership, with profits assumed to follow, poor strategies often result. The same is true when strategies are set to respond to the perceived desires of investors.
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