Question

1. why does competitive advantage or product positioning matter?

2. how do we resolve the conflict between short term vs long term goals?

Answer 1

Why Competitive Advantage is important ?

Competitive Advantage is the Advantage they have over the other competitors in the market. A Company to be more profitable in the long run shall always try to have the competitive advantage over the other players in the market. Competitive advantage refers to the position where the customers prefer the products of our company over the competitors who are producing the same type of the products (Like Tata, Maruti, General Motors). They are all in the same industry. But, a particulars customer will prefer one among the other while buying a product because of the Quality, Price which are better than the other competitor.

So, Companies shall maintain the "Competitive Advantage" over the other competitors. This can be done by:

a. Product Quality: A Company to have competitive advantage over the other shall produce the goods that are having the greater quality which the customer expects to have in terms of the product life.

b. Lower Price: A Company shall provide the goods or services at a lower price by maintaning a standard of quality when compared to the others in the market.

c. Differentiation: A Company shall provide the differentiation in terms of special features which make the customers overwhelmed and mad to have that product in their shelf. A Company whose products have the various unique features compared to other competitors can gain the competitive advantage.

d. Customer Focus: Company shall focus on the markets or the customers who have been neglected by the competitors while providing their services or goods. If we can capture those customer or markets, it will definitely create a good competitive advantage.

Therfore, Competitive Advantage is a must, which will help the company to sustain in the long run and continue to make a huge bundle of profits. So, it is one which MATTERS.

Why Product Positioning is important ?

Product positioning refers to the placing / creating the position in the market. It is an essential part of the marketing plan. Product position is used by the marketers to communicate their products to the customers whom they are intended to sell. For this it requires the analysis of the Customer needs of the sector whom you want to sell, who are the competitors and what are the methods of communicating to the Intended Customers.

No Business can survive without the customers, to have the customers it must tell them that are availble to sell the products what customers are intended to buy and what products the customers feel necessary in theor daily life.

It is possible only through the Product positioning which has the main goal of positioning the product before the target customers (Every product can not be sold to all. And Every Product has the target Customers). it should analyse the methods how can it communicate with the target customers based on the finance available, methods to be used to get deep into the market.

Hence, Product Positioning is also one that MATTERS.

2. How to resolve the conflict of Short term vs. Long Term Goals ?

For Example, When we are about to make an investment decision we all come through a thought that whether we want to invest in the Short Term Investments (or) for the Long Term.The matters which are to be considered / which provide a solution is:

a. Purpose: Purpose of the Investment clears the Conflict because when we are making an investment, we have a purpose like for the Purchase of Car, Buying a House, For Child Education and so on. If it is for a long term goal, then it clear to go for that.

b. Finance Available: Another Barrier / Conflict is Amount available for investment. Long term require a huge amount of money when compared to the short term ones. Because, Long term goals involves the huge Ideas which make the one to have more money.

c. Risks Associated: Short Term Investments have a greater risk compared to the long term investments. So,it is better to consider the risks associated with the investments you are about to make in.

Considering these matters while making the decision can reduce the conflict between the Short term Goals and Long term Goals.