Designing the next business model before the current one plateaus
How companies can identify new value pools and build business models that combine differentiated customer value with scalable economics.
Read articleWhy Should the Customer Choose You Instead?
Positioning is not a description of what a product is; it is a prediction that a specific customer will prefer it when real alternatives are present. �Higher quality,� �innovative� and �customer-centric� have no strategic content until they identify the decision, competing option and trade-off that changes choice.
Begin with the customer�s switching equation. Define the triggering situation, outcome sought, current solution, perceived risk and the effort of changing. The relevant competitor may be an internal process, delay or doing nothing. A benefit matters only if its value exceeds price, learning, implementation and reputational costs at the moment of decision.
Use behavioural evidence to find the decisive attribute. Competition authorities examine win-loss records, discount approvals, switching data, product characteristics and how customers shifted purchases after changes in price or terms to understand substitution. The same evidence is stronger for positioning than broad awareness surveys because it reveals preference under pressure.
Test the proposition against realistic bundles, not an isolated concept. Present named alternatives with credible prices, service levels and proof; observe conversion, willingness to pay and retention by use case. Then test delivery. A promise that wins demand but depends on exceptions, unavailable capacity or inconsistent service creates acquisition, not preference that can compound.
A rigorous positioning statement specifies customer, situation, alternative, superior outcome, trade-off and reason to believe. Every element should map to evidence and an operating capability. The best position intentionally loses customers whose priorities do not fit. Choice becomes durable when the promised difference is both important at purchase and repeatedly experienced after it.
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How companies can identify new value pools and build business models that combine differentiated customer value with scalable economics.
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Read articleFocus
Every strategic initiative should have a credible path from action to operational outcome and from that outcome to measurable economic value.
Product resources are scarce, making the value and strategic importance of the problem more consequential than the length of the feature backlog.
Strategic challenges
The same person can make very different choices depending on need, context, urgency, channel and willingness to pay.
A message that reassures investors may create concern among employees, regulators or communities if underlying interests are not understood.
POV
A company can gain share and still lose economically when rivalry forces pricing, investment or service levels beyond sustainable returns.
Scale should follow evidence that the underlying system becomes stronger, not merely larger, as customers and complexity increase.
Strategic impact
A proposition can create substantial customer benefit while weak differentiation or bargaining power prevents the supplier from capturing much of it.
Choosing which customers, attributes or economics not to optimise can create a more coherent and defensible basis for advantage.
What we observe
We frequently see detailed personas that create little guidance about which customers, occasions or economics should actually be prioritised.
We frequently see new products, segments and geographies added before the core growth engine has become sufficiently repeatable.