Linking competitive positions, success requirements and capabilities

To choose a competitive position, firms must have a clear understanding of 1) the specific market deliverables required to meet consumer expectations of the position, and 2) the corresponding assets and capabilities required. Only then can the firm assess the fit of the position relative to their ability to achieve it in the market. This paper proposes a tool to aid organisations’ abilities to make these strategic assessments. It incorporates choice modelling to identify specific market drivers to achieve a position and systems dynamics to identify specific assets necessary to deliver the drivers. It also links market needs and required assets to identify interactions, and simulate the effects of investments in specific assets on achieving market positions. It enables firms to systematically assess the overall fit of positions to the firm's capabilities, and determine their likelihood and costs of success.