1.0.0 Competitive Positioning

The eight keys to understanding competitive strategy in terms of developing relatively superior positions.

Art of War Quote: 

"Use your position as your war's centerpiece."
Sun Tzu's The Art of War 6:7:5

Perspective: 

"When science finally locates the center of the universe, some people will be surprised to learn they're not it."  Bernard Bailey

General Principle: 

Strategy starts with understanding positioning.

Situation: 

Sun Tzu's strategy explains competition as comparisons of the objects that we call 'positions.' The science of strategy is the study of competitive positions. This study analyses positions individually and as groups. It dissects individual positions into pieces, but it also looks at how a group of positions interact in the competitive environment. Like molecules or atomic particles, positions have specific characteristics. Though each competitive positions is unique, we can analyze and compare positions. We can discuss how positions "work" because we can discuss their common characteristics. All positions are a unique combination of characteristics because no two positions can have the same place at the same time.  Like all molecules consist of elemental atoms, all positions consist of elements that we can instantly recognize and evaluate. Given their components, positions will interact with other positions in predictable ways. We can make decisions about the relative value and strength of various positions on the basis of these characteristics.

 

Opportunity: 

Before Sun Tzu's The Art of War, success in competition was only explained solely by size. The rule was simple: the larger the force--whether an army or a single fighter, the more likely it was to win. The problem was that this rule did not explain what really happened in competitive situations where the smaller force often did win. It also didn't explain how some forces became larger than others. Sun Tzu saw that 1) size was not an advantage in many types of competitive situations, and 2) size itself could be explained by a more elemental concept, the idea of positioning. Positions with advantages create success easily. Size of an organization is a result of good positioning.

Sun Tzu's strategy defines the rules by which positions interact with other positions in the competitive environment. These rules are not deterministic, telling us what will always happen. Like the rules of sub-atomic physics, these rules are stochastic, that is, a matter of probabilities. These rules must also factor in our self-awareness and creativity. Unlike the interactions of subatomic particles which are naturally restricted to a finite set of reactions, we can consciously invent new reactions, reversing the expectations of others. This means probabilities are not fixed but constantly changing. However, all of these reactions are constrained by the basic nature of positions, which are defined by the following rules.

 

Key Methods: 

The following eight keys explain the basics of Sun Tzu's concept of strategic positions.

  1. Competitive positions are paths. They at once both a unique place in time and space and, at the same time, they are anchored in the past and have a direction toward a new place in the future (1.1 Position Paths).




     
  2. Competitive positions have both objective and subjective characteristics. Competitive positions exist both in the external world and in the human mind. Both of these aspects of a position determine how competitive decisions are made (1.2 Subobjective Positions).


     
  3. Competitive positions are compared on five key components. Competitive is comparison. People choose what positions to support and which to oppose. Comparison are made subjectively in people's minds and objectively in the results of their interactions with other positions, but both opions and results are evaluated in terms of five key elements or dimensions.  These elements are mission, climate, ground, leader, and methods. Comparing these key areas are the basis of our competitive decision-making (1.3 Elemental Analysis).
     
  4. The external competitive environment drives change and provides rewards. Without change, there would be no opportunities and without rewards, there would be no competition (1.4 The External Environment ).




     
  5. The internal capabilities of a competitor are determined solely from making decisions and executing them. We call these two internal components command and methods (1.5 Competing Agents).






     
  6. All positions are built around a set of motivations that determine both direction and strength. This is the core of a strategic position (1.6 Mission Values ).



     
  7. Competitive power comes from the unity and focus of the competitor in the strategic environment. Focus unites resources at the time and place they are needed to create a competitive mismatch.  People mistake size and wealth for power, but both often get in the way of true power (1.7 Competitive Power).



     
  8. Positions are advanced through an adaptive loop of continually adjusting responses to events. Events come from our external environment but our responses arise from our internal capabilities (1.8 Progress Cycle ).





     
  9. The skills of external competitive success are the opposite of those of internal production. The two skill sets are complementary opposites. However, both competitive and productive success depend upon each other (1.9 Competition and Production ).
 

Illustration: 

These rules of positioning govern every form of competition and every type of competitor. Each organization has a strategic position. The individuals that make up those organizations also each have their own strategic positions, both inside and outside of their organizations. We have positions in our personal relationships, in our career , in our social life, in our workplace, among our friends, and so on.  Sports teams, military units, politicians, product brands, salespeople, negotiators, lawyers and every other profession in a competitive arena are actually working with competitive positions. 

All of these positions are governed by the same eight rules. As an application of these rules, let's simply apply them to a career.

  1. Competitive positions are paths. We can get jobs that our past jobs qualify us for and which take us toward our career goals. This is our career path. 
  2. Competitive positions have both objective and subjective characteristics. Our career path is determined both by our actual performance and how that performance is perceived by others. These two aspects of the job are related but they can be very different.
  3. Competitive positions can be compared on five key components. Our career is judged by our career goals and values, job market changes, our current employer and industry, our decision-making skills, and our skill at performing our job. 
  4. The external competitive environment drives change and provides rewards. We can control neither industry trends nor how people are paid within our profession or industry. 
  5. The internal characteristics of a position determine its capabilities. We can develop our decision-making skills and our professional knowledge and abilities.
  6. All positions are built around a set of motivations that determine both their direction and strength. We must balance our career choices depending on the relative importance of money, time with family, job risk, job stress, job satisfaction, and so on.
  7. Competitive power comes from the unity and focus of the competitor in the strategic environment. There may be smarter, more talented, better trained, and better connected people in the world, but our career success comes totally by how well we focus and unify our skills on our job and its advancement.
  8. Positions are advanced through an adaptive loop of continually adjusting responses to events. Getting raises, promotions and a better position at another company are all based on the same adaptive process.
  9. The skills of external competitive success are the opposite of those used in internal productive success. Competition focuses on adapting to people while production focuses performing tasks. Getting a promotion to a new position requires different skills than performing well in that position. Our ability to demonstrate our expanded abilities depends on getting promotions, but how well we perform determines our ability to get the next promotion.
 

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