Strategy and Positioning

This chapter begins with the definition of strategy. In this context, the purpose of the strategy is explained in more detail and the influence of the strategy on innovations is examined. Among other things, competition strategies, competitive strategies, timing strategies and make or buy decisions are presented. In addition, attention is drawn to the bottleneck-concentrated strategy (EKS in German), which is a particular strategic approach. Within the framework of the positioning of a company, the peculiarities of the company and its products and services are highlighted in comparison to the direct competitors. It should be borne in mind that the direct differences with the competitors in the respective markets addressed should be worked out. The various positioning modes, such as the market leader position or the niche positioning, are described in detail in the following. They influence how the innovation strategy is designed in a concrete way. Due to the constant change in the company’s environment and due to international competition, the company must constantly check whether the positioning is still in line with market conditions and whether this should be adjusted if necessary. After the strategy and the positioning are formulated and defined, it is important that the appropriate business model is selected—i.e., the principle of a company’s operation. It turns out that it is not just about which products or services are sold, but how the company builds and designs an individual, competitive and adaptable business model. Dynamic, complex and competitive markets are increasingly prevalent. It is precisely here that questions must continually be asked of the business model. For this reason, the business model and later the corresponding organizational structure should be flexible in order to react quickly to new influences. Building on these rather analytical-constructive plans of the strategy, positioning and the business model, it is necessary to establish an innovation-friendly corporate culture. This includes aligning the innovation activities with company values as well as with company philosophy and policy. Corporate culture reflects the company’s value system. In the further course of the chapter, various aspects of corporate cultures as well as corporate philosophy are described and explained, which have a link to innovation management. These include, for example, creativity culture, implementation culture, or the culture of error.