Positioning is an essential process of launching your idea into the market. Launching in the market your fresh idea in the form of a product or service is both exciting and a vigilant effort for giving the first step in developing the enterprise. Before presenting your product idea to the market, there are few things to be considered, and positioning is one where you've set the stage with a specific graph.
The Positioning Graph
The positioning graph is a 2D plain having two axes. On the Y-axis, i.e., the vertical axis, there is the uniqueness of your idea. Its increased value shows the degree of uniqueness of your product. The higher you are vertical, the more differentiated you are from the rest of your competitors, and no one else can do what you can do. The second is the horizontal axis, i.e., the X-axis, which portrays the value of your product and your idea for your target consumers. The further you are out from the origin, the more valuable you and your company is for the users.
The positioning graph looks something like this:
Case Scenarios of Positioning Graph
The graph has four different and extreme situations, and here we will discuss how they are critical or what useful information the graph can bring out to the entrepreneurs.
The Best Case
This is a scenario where your idea is unique and valuable; the graph points somewhere here, as shown in the figure below.
This is the point of the graph where you have margin because no one else can cross that, and this healthy stage is where you can extract revenue from your product and so the history.
The Price Compromise Case
If there is a case where your idea in the form of a product or service is valuable but not unique, you (as an entrepreneur) will have to compromise on price because someone else in the market is doing the same thing.
The Effort Wasting Case
If you have a product that has high uniqueness but no value, then you are wasting your effort on something which has no value in the market, and nobody cares.
If your product is not valuable and not unique, you are not in the market - you as an entrepreneur waste your time, money, and effort and must look for innovation or switch to some other idea domain.
There is no reason to make this idea to reality because no one cares about it, and it already exists in better form.