All about Strategic PositioningMarkstrat
Article
Since April 1st, we have been playing business simulation game, Markstrat in business strategy class. As a matter of fact, it is very exciting game and the competition that was around this game is far beyond my expectation. Looking back what we did for this game for the first moment of this game, we messed up the game. We don’t exactly understand the manual of the game and we didn’t play the Markstrat based on analysis but sense. As time goes by, we realize we are in trouble. Our stock index rapidly decreased and our market share is getting smaller and smaller. Experiencing trial and error, I realize that this simulation is all about “strategic positioning.”
Strategic positioning is the strategy that corporation concentrates given resources on the target market. However, this strategic positioning is getting difficult and challenged especially in service
industry, because customers’ needs are becoming more diverse and it is getting hard to find common in them.
If the company is big enough, it can target various kind of market at the same time. However, if the company doesn’t have enough resources, it’s almost impossible to target various markets. Even though, the company that has enough cash and capacity, it became very hard to keep competitive advantages in every market they launched into. In the worst case, the company could front the fact that they don’t have any competitive power in any market in which our team is. In other words,
Therefore, many times, it could be more efficient to target specific demographics and heavily focus specialized competitive advantages and resources on the target group. Once the company positioned in specific target group in the market through this strategy, the satisfied consumers who were targeted by the company can create new customers in the other market through the oral marketing.
Strategic positioning is the strategy that corporation concentrates given resources on the target market. However, this strategic positioning is getting difficult and challenged especially in service
industry, because customers’ needs are becoming more diverse and it is getting hard to find common in them.If the company is big enough, it can target various kind of market at the same time. However, if the company doesn’t have enough resources, it’s almost impossible to target various markets. Even though, the company that has enough cash and capacity, it became very hard to keep competitive advantages in every market they launched into. In the worst case, the company could front the fact that they don’t have any competitive power in any market in which our team is. In other words,
Therefore, many times, it could be more efficient to target specific demographics and heavily focus specialized competitive advantages and resources on the target group. Once the company positioned in specific target group in the market through this strategy, the satisfied consumers who were targeted by the company can create new customers in the other market through the oral marketing.
The market that the company concentrates on could be the specific 
area or particular age group. The important thing is to arrange the very narrow target group and massively focus on.
When Starbuck launched into Korea for the time, they did strategic positioning. They decided highly targeted places, City hall, Jong-ro, Gangnam where most people who have purchase power walk around and Starbucks opened the shop almost every corner of this districts. As a result of this strategy, Starbucks could successfully appeal the luxurious image and high quality and then it was kind of easy to open the business in other district because Starbucks already got a reputation among people.
area or particular age group. The important thing is to arrange the very narrow target group and massively focus on.When Starbuck launched into Korea for the time, they did strategic positioning. They decided highly targeted places, City hall, Jong-ro, Gangnam where most people who have purchase power walk around and Starbucks opened the shop almost every corner of this districts. As a result of this strategy, Starbucks could successfully appeal the luxurious image and high quality and then it was kind of easy to open the business in other district because Starbucks already got a reputation among people.
Of course, this strategic positioning isn’t always successful and it is quite risky to put all the resources into target group. Therefore, the company should have enough time to consider about what their competitive advantages are and how to implement.
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