Positioning in SMEs: entrepreneurs’ perceptions and strategies

Abstract

Purpose The concept of positioning is fundamental to how a company approaches and succeeds in a market. Despite a growing body of literature on positioning, existing research has focused mainly on larger companies and brands. This paper aims to apply the concept of positioning to small- and medium-sized enterprises (SME) companies to explore how SME entrepreneurs understand and approach the positioning of their company, and what differences exist compared to large companies and brands. Design/methodology/approach Using a qualitative research approach, this study is based on focus groups involving 13 SME entrepreneurs. The data were analyzed using a qualitative structuring content analysis, which resulted in a newly developed and empirically based typology of SME positioning strategies. Findings The results indicate that SME entrepreneurs view positioning as highly relevant but differ from larger companies in terms of market and brand orientation. Building on the interviews, an empirical matrix of four positioning strategies was developed which SME entrepreneurs typically use: specialization, differentiation, conviction and opposition. Practical implications Based on the developed positioning typology, this study proposes a two-step approach for SME entrepreneurs: gaining clarity on the basic positioning dimensions and exploring four strategic fields of action. Originality/value Overall, the findings contribute to a better understanding of SME entrepreneurs' positioning strategies as important building blocks for market and brand success. The new positioning typology provides a conceptual contribution for further research in the marketing/entrepreneurship interface.