The Importance of Repositioning

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Repositioning is important for a corporate decision when there is a better opportunity in a different location than their present location. It is necessary to conduct a study on the new location desired to reposition the company where it should. It is normal to have competitive issues as the business world is limited to their good condition to get placed and succeed. It can be shattering and make situations in the competition within the industry especially in the retail industry. It then will make changes in consumer patronage from a powerful but new entrant to the location.

Corporate businesses are taking time and effort to diminish problems on their hold on the market in terms of competing. A good economy grows from competition, but it is painstaking to commit their plans and know their stand within the market. They address issues of retaining their market share or get an aggressive move like diversification of their products and services due to the entrance of a new and strong competitor. A strong competitor entering a new location has drawn a large amount of capital to establish themselves. By then must keep up with their plans and implement according to a goal assumed by stakeholders. In this course of action, the consumers benefit from the quality of services from the company, and a sure way to prosper the economic stand from a repositioning of a company to the new location.

Fighting among corporate companies gets in the way of peace among businesses. A business corporation enters a new location. It then will lessen the stability of an incumbent. Thus, makes quarrel by language or actions to reach a moment against its competitor. Competitive dynamics can foster any company to changes they have to bear. Can any stable corporation withstand a strong and big competitor from entering its territory and tolerate its consequences? A product or a brand can cope in time from consumer loyalty else the product or service necessitates the customer needs and satisfaction on a high level. But, this is not enough in a free market where diversity of preferences does exist.

Competitive Dynamics on Repositioning

The competition of marketing by business corporations is the knowledge of how a product or service can be in position upon a customers mind. The support of a business to a product or service they manage is to take advantage of consumers loyalty and project a good image towards the public. A repositioning company will have to be able to penetrate on the willingness of consumers to them. What does the incumbent able to strategize is a meaningful approach to their existing market base and maintain their identity, however, diversification and repositioning will occur.

To be successful be the company the incumbent or the new entrant in the national scene. The strategy must be based on the reality that is already existing in the mind of the consumers say, Ries and Trout. A big and strong company may able to have a wide range of the market segments. Saying to have a variety of segmentations catering to the public. Planned in advance the moment with the incumbent must be well thought out so as to lessen friction within the corporate environment.

The public acceptance only occurs from what is experienced and is known by the public. What is different in a society is not acceptable and is vain to act on what you want for them rather than manipulating. From what in reality exist and is already being partaken in everyone's mind. The analysis of the competitive dynamics and competitive response ensures the economic condition of the national state. Situations may occur but it is a sure sign there is a change occurring within the system. It shows effective moves of participants of the economy. The public is supposed the independent variable in the system. Whereas the economic participants are the dependent variables that rely on what is existing in the present condition of the society. This is a fact every participant knows who have access to the loyalty of public trust.

Positioning Strategies

Cost Leadership.

Competitive pricing is a marketing strategy that is usually effective to attain the attention of the public. It is a concern from different class differentiation. Every class level has their own motives and capacity to purchase. So as the economic condition is in the balance as to market targeting that is managed. A product caters only to a specific consumer base. So as to plan a specific strategy for each service a company has.

Differentiation Strategy. We say the product is available but it has differences of features and quality. It separates every company the image they project from the product they offer. Do they offer image projection or long life of the quality? The product is kept in the mind of consumers the whichever they prefer. The company then is a source of the consumer's image or supply, as Ries and Trout say that the perception of the consumer will be kept in mind. And in relation to branding, it is important that the company support this reality as a principle to change.

Segmentation Strategy.

The company has the initiative to segment their product through market targeting. They have the mechanism to operate and manage to specific buyers of their services. There is no panacea for all, so to speak. In regards to segmenting their patronage, it is attributive to a different economic status of buyers and several factors that is a dependent variable to.

Business Expansion to Other Countries

Corporate decision to locate positioning in other countries sets a path of growth within its stability and condition. The incumbent businesses then will either to reposition their marketing strategy or to respond to the new entrant in the national economy. They must keep themselves kept apart from their products or let say geographically to establish one's own and keep up. It is up to them to assess the situation where the new entrant has a basic capability of intrusion in the market base. Their survival in the market share can persist from what is relevant to the consumer patronage.

The incumbent market may able to react to a new market entrant. As to reposition or respond to the new competitor, it is through their capability and capacity to counter the attack of the challenge of a better rival. Should the incumbent respond or do nothing is within the capacity of their resources to act on a certain threat to the marketing stand they enjoyed in the past.

It calls for the incumbent's true capability to reposition and keep a distance from a competitive stand of a dominant competitor. It is acceptable to place themselves to where they will be free and reign within their corporate ideals. A company keeping abreast with the competition is level with the dominant and will able to answer attacks from a stronger and better competitor. It means that enough resources will enable them to come up with strategies at least cost to implementing their stay in the competition.

Economic Benefits of New Entrant Market

Challenges are called forth by a new market entrant to a national condition. They give the government the benefits of taxes received and share a good stand in the economic situation the country has at present. The new entrant market is then driven to challenge incumbent market of their power and capability in acquiring and achieving excellence in the economy the host country shared with them.

Bargaining Power of Suppliers. Being a new entrant with the power to command a better price compared to incumbents pricing. Stronger corporate strategies of a new entrant can apply their resources to receive better patronage, as consumers are very receptive to lower prices with the same or even a better set of quality the competition offers. Says Ries and Trout communication of strategies of companies are not new to them that only a fragment of information can readily enter the consumer's mind. So makes a new entrant be absorbed and accepted by the public in due to a better and formidable level is shown to them.

Bargaining Powers of Buyers. What is able by the competitive market to handle the powers of buyers is the receptivity they able to manipulate in a strategic means the consumers able to give and take from markets. Thus, a strong and dominant stand will try to capture the market base as soon as possible with the resources available in their hands. If they able to receive and their acceptance then patronage will get achieved.

The Threat of Substitute Products. When substitute products enter the market, it then creates a sense of variation. No one company has the same idea towards their products and services. So is said to have options given to consumers and in the end, threatens the weak company from its existence.

The Risks of New Entrants.

New entrants may suffer from business politics, where incumbent companies can utilize bullying especially if this is culturally supported. The public as consumers has the ultimate say on the economic standpoint. So it is a must to verify the new entrant’s company mission, vision, and values to the host country’s people.

Rivalry Among Existing Competitors. It is not just the new entrant's competitive dynamics towards the market condition sets change. But also the existing competitive rivals that already exist do has a concern on this matter. There may be several players in a competition but if more than one is threatened by a dominant new entrant company then complex scenario begins.

Word Responses and Action

Competitive dynamics occur in the business environment, and thus, the rivalry of companies be the center of the consequences. Threats of new entrants, the power of suppliers, the power of buyers, and the threat of substitute products are factors to the competitive dynamics which results to change and growth to economic condition in general.

The competitive dynamics will then seek competing rivals to value sorts of decisions. Relying on their corporate mission, vision, and values. Their branding put to the test as pertained to studies by Zahid and Raja (2014). Their repositioning can be geographic or they may resort to diversification. From the study of Muzellec et al. (2003), the rebranding of their products is a painful decision. The end of their product life has come to take away the efforts of product support from the company just to keep a competitive stand in the market. Resorting to word response to the public may come to bully competitors if they tend to possess a specific area in the market that they deen to have acquired.

A price response is imminent on the concern of competitiveness. It shows they have prominence in the market but stiff competition led them to this requirement. Word responses may come as an advertising strategy to the public and the consumers specifically. Another action they can make is the conducting of surveys on how they rate with the competition so a cost strategy must be implemented.

The Research Survey

Perceived by this research to conduct secondary qualitative methods. Case studies that relate to competitive dynamics and word responses are then able to verify the context of the phenomena and are sought with evidence with the qualitative approach the issue regarding the understanding of competitive dynamics in general and so with the accompanying example cited to elaborate the research that is sought to reach a consensus of the opinions raised in the new entrant in a host country and its benefits to the national economy. Notwithstanding the acceptance of a new market entrant in the nation.

The research is designed to give contrast to all opinion involved in a new market entrant and indicate the phenomenon that made public issues. Sought are the opinions and thoughts that result in such a change within the business environment.


Everyone has a broad opinion or even when not but of a national issue is involved in public concerns, balance can be taken from the consensus of the countries culture and general acceptance of a point of view. The public has a say and the government takes control or benefit from economic gain competition may entail. In response to every participant in the business environment, the country can grow from changes to the positive response of public interest. A free market grows from aggressive moves that a company can support to implement strategies designed. In all of this, the participant of dynamic competition escalates the benefit of the public from their knowledge of buying motives and behavior and so do they value how they will implement any methods on manipulating and control of patronage.

Models of competitive dynamics are used in this research to facilitate and illustrate how and what are the consequences that are meant by a new entrant company to a host country. They will hold a relationship with the government, the buyers, the suppliers, and a hold of the product and service they offer. The competition will become stiff and those weak may have a silent moment in the business environment. The strong will make noise in the industry and will encourage the market to become competitive. Every company has a concern about the quality of their products and so it is not the edge a business industry has in the market. We come to think of strategies, corporate competitive edge, external control of corporate relations and so as having all aspect of the business organization in a better condition to the business climate. Situations can be easily resolved if a corporate understanding of problems are given attention and to have a firm view of its own position within their status and situation.


It, therefore, is important for competitive dynamics to inform corporate concerns that goes ahead of the race within the industry or the national level it is. Response to a threat must indicate their position in the industry and thus view in public as a model and keep their patronage to a satisfactory action. What is in mind of corporate entities are their financial gain and profit, so do they have the privilege to mean the benefit of consumers. The significance of being in a corporate situation is at a high profile and importance to the country, and so given high status and relevance. They are not mere individuals or groups, they are an organizational entity having status in society.


Zahid, S., (2014), Effect of Rebranding and Repositioning On Brand Equity Considering Brand Loyalty as a Mediating Variable, Retrieved March 4, 2018,

Ries, J., and Trout, J., Positioning: The Battle for your Mind, Retrieved March 4, 2018,

Muzellec, L., Doogan, M., and Lambkin, M., (2003), Corporate Rebranding – An Exploratory Review, Retrieved March 4, 2018,

January 19, 2024

Business Economics


Corporations Marketing

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