Final answer:
The three key principles of strategic positioning are creating a unique value proposition, making trade-offs in competitive actions, and aligning company activities to reinforce its strategic positioning. This approach helps companies focus on their core competencies, define clear market positions, and optimize internal operations for competitive advantage.
Step-by-step explanation:
The three key principles of strategic positioning are the creation of a unique and valuable position, trade-offs in competing and creating a "fit" among activities. Strategic positioning involves a company setting itself apart from competitors through the products and services it offers as well as the way it structures its operations and interactions in the marketplace. It requires careful decision-making about which avenues for competition to pursue and which to avoid. Cutting a distinctive position often means that a company offers a particular mix of value that is not replicated by others.
For example, a business focusing on a narrow range of products, also known as its core competency, can often be more successful than one attempting to offer everything. Such a focus enables the company to specialize, gain expertise, and offer superior value in its chosen area. Competing on every front, however, can dilute a company's resources and weaken its competitive advantage. Strategic trade-offs, therefore, involve choosing not just what to do, but what not to do.