The Ten Pitfalls of Positioning, A Guide to Avoiding Common Strategic Traps

Positioning is not just a branding exercise—it defines the very direction of a company. If the positioning goes wrong, the harder you work, the more likely you are to veer off course, sometimes even building advantages for your competitors.

 

Here are ten common mistakes in positioning that every company should be wary of:

 

1.Chasing Big Markets Too Soon

 

Many companies rush to claim "big markets" only to find themselves outmatched, while the real beneficiaries are their competitors.

 

Example: 360 once attempted to enter e-commerce, competing head-on with giants like JD and Taobao. After burning through enormous resources, it had to withdraw, because the space was already dominated.

 

Lesson: Good positioning isn't about being big—it's about being precise. Start small, find a unique entry point, and build your breakthrough there.

 

2. Mistaking Positioning for Inspiration

 

Some believe positioning is about brilliant flashes of inspiration. In reality, the best positioning is often simple, clear, and rooted in obvious truths.

 

Example: The slogan "Nongfu Spring Tastes a Little Sweet" may sound casual, but it captured consumers' concerns about water quality by stressing "naturalness." That simple emphasis created differentiation.

 

3. Waiting for the Perfect Strategy

 

Many companies delay action, waiting for a flawless plan. The result: missed opportunities.

 

Example: Tesla didn't start with mass-market cars. It first tested the waters with high-end sports cars, then gradually moved into mainstream vehicles.

 

Lesson: Strategy only needs to point in the right direction. Execution and iteration matter far more than waiting for perfection.

 

4. Overemphasizing Product Features

 

Companies often obsess over product distinctions. Yet consumers may value something else entirely.

 

Example: Xiaomi's success wasn't built on hardware specs but on the perception of "value-for-money" and its unique enthusiast culture.

 

Lesson: Competitive advantage lives in the customer's mind, not in technical parameters.

 

5. Assuming Consumers Are Experts

 

Many companies overestimate consumers, imagining they compare specs like analysts. In reality, consumers just want a simple reason to choose your product.

 

Example: Laundry detergent ads don't share formulas; they promise "stronger stain removal." Consumers care about results, not mechanisms.

 

6. Lacking Courage to Create New Categories

 

Opportunities often lie where no one has ventured. Yet most companies shy away from risk.

 

Example: RIO pioneered the "ready-to-drink cocktail" category, sidestepping the red ocean of beer and spirits to capture its own space.

 

Lesson: A new category is a new mental window. Whoever opens it first often becomes synonymous with it.

 

7. Making Strategy "Democratic"

 

Strategy meetings often seek consensus, but consensus easily leads to mediocrity. Truth and boldness usually lie with the few.

 

Example: The iPhone was born because Steve Jobs made decisive calls, not because it was voted on.

 

Lesson: Strategy is a decision, sometimes by one person. It is not a compromise among many.

 

8. Announcing Too Early

 

Some companies shout slogans before their strategy even lands, giving competitors time to prepare.

 

Example: LeTV once loudly championed its "ecosystem," but execution fell flat, and its capital chain collapsed.

 

Lesson: Strategy is proven through action, not words.

 

9. Losing Patience in Execution

 

Many sound strategies fail because they are abandoned halfway.

 

Example: Amazon endured more than a decade of minimal profits before building its formidable moat. Had it quit after three years, the Amazon we know today wouldn't exist.

 

Lesson: Strategy requires patience and persistence. On the road to success, most give up too soon. Only those who persevere succeed.

 

10. Chasing Too Many Opportunities

 

A strategy may be set, but constant temptations from "new opportunities" scatter resources and erode focus.

 

Example: Some Chinese phone makers expanded abroad, jumping between India, Africa, and Europe, achieving little in any. By contrast, OPPO and vivo focused on lower-tier markets and secured their positions.

 

Final Thoughts

 

Positioning is a battle for perception and a long-term campaign. Success comes not from doing more, but from doing what's focused, consistent, and patient.

 

 

• Don't chase size blindly—find your breakthrough.
• Don't wait for perfection—iterate quickly.
• Don't obsess over features—own the customer's mind.
• Don't rush—endure with patience and focus.

 

Avoiding these pitfalls will help ensure strategies don't just sound good, but truly land and drive lasting growth.

 

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