Understanding and improving competitive position is crucial for several reasons:
Market Share: A strong competitive position often translates to a larger market share, which can lead to increased profitability. Customer Loyalty: Companies with a strong competitive position typically enjoy higher levels of customer loyalty, reducing the cost of acquiring new customers. Brand Equity: A strong competitive position enhances a company's brand equity, making it easier to introduce new products and services. Negotiating Power: Businesses with a strong competitive position often have greater negotiating power with suppliers and distributors, leading to better terms and conditions. Resilience: Companies with a robust competitive position are more resilient to market changes and economic downturns.