The Strategic Position Analysis Tool is an effective approach to analyze and discuss both current and future offerings in comparison to the market.
Many solutions may be conceived, but which ones are better positioned to succeed in the marketplace? And which will truly enhance competitiveness? This is the purpose of the Strategic Position Analysis tool.
Current or future solutions can be mapped along two axes: “ability to win” (or ability to compete) and “market attractiveness.”
By visualizing these dimensions, teams can compare solutions for their market fit and competitive strength, discuss how well they align with company objectives, and decide where limited investment budgets should be directed.
In addition, a variation of this tool focuses on markets rather than solutions, offering another powerful way to determine which markets to target—and why.
A marketing strategy aims to identify the market hot spots that offer the most promising growth opportunities. When evaluating current or future offerings, three key dimensions help guide marketing decisions:
Market segment potentialThis reflects the relative size of a segment compared to others and highlights where greater business impact can be achieved.
Derived from several factors—such as relative growth, technology maturity, profitability, or brand alignment—market attractiveness helps identify where to compete and why certain segments are more promising than others.
This measures the capacity to differentiate from competitors. Even the most advanced solution may struggle to succeed if it faces a strong rival. A company’s ability to stand out and defend its position must therefore be carefully considered.
These three dimensions form a strategic map with two main axes: market attractiveness (vertical) and ability to win (horizontal).
The bubble size on the map represents the market potential addressed by each solution.
It is important to note that these two axes are not entirely independent. For instance, reducing price to improve “ability to compete” may also lower “market attractiveness.” Solutions can thus shift along diagonal paths on the map.
Price adjustments are rarely an effective way to improve positioning; they often trigger competitive reactions. Never adjust price without a strong value proposition.
This matrix is particularly useful for visualizing strategic options and fostering informed discussions about future portfolio choices.
For a related visual approach, see the Portfolio Graph – Aligning Sales and Marketing on Solution Value and Positioning page.
The Strategic Position Analysis map offers four quadrants that represent distinct competitive situations.
High ability to win / High market attractiveness: These solutions are strategic priorities—develop and protect them.By analyzing these positions, teams can align product roadmaps, anticipate risks, and strengthen the resilience of their development strategy.
When optimizing solutions, the Strategic Position Analysis tool helps teams discuss critical business questions:
These questions encourage dialogue around company objectives—such as profitability, growth in specific geographies or segments, and innovation focus.
When researching this topic, you will find many recommendations emphasizing focusing on markets that grow faster or yield higher profitability—a clear application of Strategic Position Analysis.
Two useful external resources include:
Both mainly address market segments, yet when you consider sub-segments, solutions naturally emerge as the focal point of the analysis.
A structured discussion on Strategic Position Analysis enables a critical evaluation of the solutions roadmap and helps determine how investment funds should be allocated for optimal results.
By exploring competitive scenarios, teams can strengthen the resilience of solution development plans.
Understanding which quadrant each solution occupies—and which actions each position implies—is key to ensuring future growth and profitability.
All these considerations must be carefully discussed, since solutions within a portfolio are often interdependent and may influence each other’s success.
Project impact and prioritization often hinge on customer adoption and expectations. For a broader understanding of these drivers, visit our Customer Mix page.
Portfolio prioritization becomes sharper when aligned with customer segments. For segmentation foundations, visit Customer Segmentation Principles.
Competitive positions and solution attractiveness rely on understanding market forces. See Market Mix for the structural drivers behind positioning.
Prioritization becomes clearer when the value created by each option is well understood. For this broader perspective, refer to our Value Creation page.
Prioritization decisions often involve pricing considerations. To place these evaluations into a broader context, see our Value Pricing page.
Strategic positioning becomes more effective when grounded in the Solution Mix, which defines how solutions deliver value and compete.
Some solutions require specific channel approaches. See Place Mix Strategy to understand how placement supports solution priorities.
The Portfolio Graph focuses on perceived value and positioning in sales and marketing, whereas Strategic Position Analysis compares market attractiveness and ability to win to support investment and portfolio choices.
Ideally once or twice a year, especially when major market shifts or new competitive offerings emerge. Regular reviews ensure decisions remain aligned with evolving opportunities.
Yes. Mapping markets instead of solutions is a variant of this method and can be highly effective for deciding which market areas to enter or expand.
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The Excel-based Strategic Position Analysis Tool simplifies these comparisons by providing a visual method to assess, discuss, and prioritize projects.
This practical visualization tool supports informed discussions and helps prioritize actions that align with your company’s strategic objectives.
Explore tools related to the topics covered in this section. For a wider selection, visit our webshop using the link below, or continue browsing our marketing mix pages for additional insights and solutions.
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