Summary
1. At any given time, numerous entrepreneurs are trying a variety of pursuits and are creating all kinds of niches on the periphery of any business. The problem is that while all this is happening, it is not clear which of these many niches will grow and emerge as a sizable strategic position.
2. Established companies should not allow this uncertainty to paralyze them, nor should they rush haphazardly into any new position. They should conduct a detailed cost/benefit analysis to determine whether to adopt a particular strategic position.
3. Because new positions are often in conflict with existing positions, the best way for an established competitor to adopt another position is by creating a separate organizational unit.
4. If a firm adopts a new strategic position with the idea of ultimately establishing it as its primary strategic position, the best course of action is to slowly phase out the older position.