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Always Seek the High Ground |
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The high ground is the strongest position. |
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The high ground in business today is owned by names with brand strength like Microsoft in software, Coca-Cola in soft drinks, Nike in athletic shoes, and McDonald's in fast foods. |
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Attaining the high ground is one battle and keeping it is another. In the battle for dominance of browsers in the World Wide Web, Netscape got to the high ground in market share by giving away free product. Then, Microsoft entered the market with free software while Netscape started to charge for its browser and down went Netscape's market share. |
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Apple gained the high ground in desktop publishing and image/graphic handling ability. Then it frittered this leadership position away through complacent, arrogant tactics. Now it's fighting back for a stronger position. |
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Jelly Belly, with 75 percent of the gourmet jelly bean market, is trying to increase its market share even more by selling through major grocery chains. The concern is that this expanded distribution may affect the brand name cachet and upset its current distribution channels. |
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Each of these brands faces the problem that market share is either increasing or decreasing. There's no such thing as staying exactly where you are. You either get bigger or you get smaller. |
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In the military, positioning is occupying a key strong point in the terrain. In business, positioning is occupying a key strong point in the mind. You "own" a position in the mind either because you are the leader or because of significant differentiation. The unique taste of Dr. Pepper provides a significant differentiation, as does the unique marketing approach of Tom and Jerry's ice cream. |
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The worst position of all may be not to have a position. That's the struggling brand name you've never heard of. In the final analysis it is the perceptions of the market that actually position the brand. |
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In every industry, the action of moving up in market share erodes the competitor's base. This dysfunction forces displaced competitors to compete for lesser positions that offer even smaller profits. As market positions change, the one who captures the high ground gets the large revenue base and all the accompanying advantages. Similarly, the loser's losses are cumulativenegatively. |
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