Final answer:
The positioning of a business is driven by competitors, as illustrated by the strategic moves and countermoves of two firms seeking to capture market share from each other.
Step-by-step explanation:
In the context of market competition and business strategy, the concept of positioning is driven by multiple factors. One key driver, in this case, is D) Competitors. Companies often engage in strategic positioning by assessing their competitors' actions. For example, suppose Firm A (Amy) and Firm B (Joe) are two competing businesses on the same street. By moving her store next to Firm B, Amy can create an intervening opportunity and attract customers traveling to Joe's store. If Joe responds by leapfrogging Amy's new position, an equilibrium can eventually be reached where both stores are adjacent and capture a roughly equal share of customers.
However, positioning is not solely about location. Firms also look to differentiate themselves through price, service, and product quality. Yet, it is not unusual to find similar types of businesses like gas stations and pharmacies clustered together, which is a testament to the competitive dynamics that drive positioning.