This paper provides a comprehensive overview of strategic positioning as a management framework, covering the five core steps: analyzing the future, collecting information, conducting analysis, choosing a strategy, and implementing plans. It examines analytical tools such as SWOT analysis, the Product/Market Matrix, and the Boston Consulting Group portfolio model. A case study of India's Doordarshan public broadcaster illustrates how these tools apply in practice. The paper also addresses corporate governance principles, Hofstede's five cultural dimensions and their influence on strategy, strategic leadership responsibilities, and the management of organizational change in volatile environments.
Strategic positioning is the placement of an organization — or one of its units — in a desired future state, while accounting for a volatile environment and systematically recognizing that intended placement. It includes planning the desired future position of the organization on the basis of present and foreseeable developments, and creating plans to realize that position.
The strategic positioning method was devised from the business world and is targeted at ensuring the effective functioning of the organization. The strategy determines the content and character of the organization's activities. Terms such as legitimacy, survival, market positioning, relationship with the environment, and the choice of a particular work area all arise in this context.
Subjects that have been developed reasonably well in the literature on strategic management include information-gathering techniques, examination techniques, and planning schemes. However, no equivalent methods have been devised specifically for exploring the future. Several key questions must be addressed in strategic positioning:
Strategic positioning involves the following steps: (1) the future, (2) information collection, (3) analysis, (4) choice of strategy, and (5) implementation.
Future plans are grounded in the past and present. The waves of the future are always interpreted on the basis of the smaller shifts that are foreseeable in the present. Trend research according to Naisbitt — based on shifts in the essentially closed news circuit — relies on small changes that define future developments. If current trends can be understood and tracked, they may be projected usefully into the future.
It is important for every organization to map the ongoing developments that are relevant to its own operations. A first exploration of strategic positioning can be constructed by extrapolating trends and aligning them with the field in which the organization operates.
Information collection includes both internal and external research.
Internal research asks: Where does our organization stand? What internal factors are important for its survival, and for its failure or success — both positively and negatively? It is useful to draw up a list of relevant criteria applicable to the specific department or unit in question. This helps determine the strengths and weaknesses of the organization.
External research asks: What external pressures could significantly affect the realization of the organization's objectives? What external critical factors exist? While standard lists of such factors are available, the organization should develop its own relevant criteria — ones that apply not only to its sector but also to region-specific developments. This analysis reveals the threats and opportunities facing the organization.
Future opportunities and threats may also be estimated through extrapolation (using trend curves or mathematical models), through systematic consultation with experts, or by constructing one or more empirically grounded, plausible scenarios of anticipated developments.
A strategic position analysis compares internal and external research data. A widely used tool is the SWOT analysis, in which four lists of factors are drawn up: Strengths, Weaknesses, Opportunities, and Threats. This is typically conducted in a group meeting of organization members.
A second method is the Product/Market Matrix. It asks: Can you, drawing on the existing product range, identify new applications or markets? Can you serve markets where you are already established with a variation on your product? For example, New Zealand sheep farms facing stiff competition on the wool market devised a new application for wool — the absorption of oil spills at sea — thereby bringing an existing product to a new market.
A third method is Portfolio Analysis, originally devised by stock exchange operators, which asks: "Which holdings should we keep and which should we sell?" A prime example is the Boston Consulting Group (BCG) matrix, which plots industry investment or growth rate (Y-axis) against market share or profit (X-axis). Four quadrants are identified: stars, cash cows (milk cows), question marks (wild cats), and dogs.
Note: For NGOs, the term "profit" should be translated into the intangible value derived — such as relief of a social problem or service to a public interest. The instruments of strategic positioning were devised for the business world but are sufficiently adaptable for use by NGOs as well.
After analyzing internal and external critical factors and calculating the chances of seizing opportunities and meeting threats, the organization determines its positioning. A specific positioning choice may read as follows: "We aim to become an organization that…" — followed by a description characterized by products, customers, and image.
Once such a choice is made, it must be determined which strategy is most appropriate to realize it. General strategic options include stabilization, growth, contraction, and turnaround. In practice, organizations can typically identify much more specific strategic directions — such as growth in a particular area or orientation toward a specific market.
Theory is translated into concrete actions needed to benefit from the chosen positioning. A comprehensive strategic plan may include the following elements:
Business plan, aimed at: market penetration (bringing products to new markets); market development (growing new products in existing markets); product development or diversification (new products in new markets); and internal growth (strengthening position in existing markets).
Product plan: Selection of products or services, determination of quality, and the effect of the product on the customer.
Marketing plan: Addresses the marketing mix — product policy, promotion policy, distribution policy, and price policy (cost price, market price, or competition price).
Production plan: Choice of equipment, location, and production process; production standards, layout, production management, stock control, quality control, cost control, and maintenance.
Research plan: Aimed at technological development or product modification.
Personnel and Organization Plan: Covers positions, recruitment and selection, career development, organizational structure, training and education, organizational culture, performance assessment, terms of employment, and relations with representative advisory bodies and trade unions.
Purchase plan: Covers evaluation of suppliers, account management, and make-or-buy decisions.
Logistical plan: Transport management, stock and handling, lead times, and delivery schedules.
Financial plan: Registration and analysis of financial data, and responsibility for securing financing.
Information plan: Collecting and processing organizational data.
Quality plan: Addresses consistency, competence, accessibility, communication, credibility, reliability, safety, and appearance.
Public Relations plan: Both internal (mission communication, propagation of business objectives, staff motivation) and external (building and communicating the organization's goodwill).
Ansoff introduced the concept of Strategic Issue Management in 1980. A strategic issue is defined as "a forthcoming development, either inside or outside of the organization, which is likely to have an important impact on the ability of the enterprise to meet its objectives." He further notes that an issue can be a forthcoming opportunity in the organization's environment or an internal strength, as well as an external threat or an internal weakness (Organizational Future Orientation, 2010).
Doordarshan (DD) is India's primary public service broadcaster, with more than 1,000 transmitters providing coverage to approximately 90% of the country's population across roughly 70 million homes. It employs over 20,000 staff to manage its network. In recent years, DD has faced increasing competition from more than 65 private channels and from cable and satellite (C&S) operators. The C&S network reaches nearly 30 million homes and is growing rapidly.
DD's business model is based on selling half-hour slots of commercial time to programme producers and collecting a minimum guarantee. For example, the tariff for the first 20 episodes of a programme is Rs. 30 lakhs plus production costs. In exchange, producers receive 780 seconds of commercial time to sell to advertisers. The break-even rate for producers at current prices is Rs. 75,000 for a 10-second advertising spot. If a programme runs beyond 20 episodes, the minimum guarantee rises to Rs. 65 lakhs, requiring producers to charge Rs. 1,15,000 per 10-second spot to break even. This creates a problem for advertisers, as the competitive market rate for a 10-second spot is only Rs. 50,000. Advertisers are therefore reluctant to buy commercial time on DD, and as a result, DD's projected revenue growth is only 6–10%, compared to 50–60% for private sector channels. Software suppliers, advertisers, and audiences are moving away from DD owing to its unrealistic pricing policy (Career forums, 2010).
DD has three options: first, privatization; second, remaining a purely public service broadcaster; and third, a middle path combining elements of both.
For several years, Doordarshan was the sole television broadcaster in India. After the sector was opened to private entrepreneurs through cable and satellite channels, the market underwent major changes. The number of channels increased, and the quality of programming improved, backed by advances in technology. Broadcasting has become a popular and commercially significant business, and broadcasters have recognized its great market potential. However, realizing this potential requires rationalized policies and openness to innovation — outcomes that cannot be achieved simply by expanding coverage or by leaving bureaucratic obstacles in place.
Strategically, DD needs policy reform. Of the three options available — full privatization, remaining a pure public service broadcaster, or a middle path — the third option appears most appropriate. Complete privatization does not seem logical given India's diverse political landscape, nor is it desirable to hand broadcasting entirely to private interests, since it serves as a vital channel for many socially important public programmes. The government could consider forming a corporation (as it did with Prasar Bharti) and granting DD reasonable operational independence. Advertisement tariffs could be made more competitive, though they should also be justified with reference to DD's extensive reach. With 70 million homes covered, the sheer number of viewers may warrant higher tariffs than those charged by smaller private channels.
The SWOT analysis of Doordarshan involves assessing the strengths, weaknesses, opportunities, and threats facing the organization.
Strengths:
Weaknesses:
Opportunities:
Threats:
It is recommended that DD pursue a middle path — a combination of both public and commercial orientations. DD should reduce operational costs and ensure greater productivity in terms of revenue generation and infrastructure utilization. Where capacity is underused, it should be leased to private operators. At the same time, programme quality and viewership should be improved. Bureaucracy risks stifling new strategic initiatives and reducing transparency. Complete privatization could generate substantial revenue and solve many managerial and operational problems, but a complete public monopoly is inadvisable because it would prevent the government from fully exploiting DD's potential as a vehicle for social and public communication. The government would also forgo the benefits of a rapidly growing media market (Career forums, 2010).
"Core principles of accountable corporate governance"
"Five cultural dimensions influencing organizational strategy"
"Leader responsibilities and managing organizational change"
Always verify citation format against your institution’s current style guide requirements.