Crafting a Competitive Advantage: Tempering Entrepreneurial Action with Positioning-Based Values

Abstract

The idea that SMEs do benefit from constant marketing activity, but only if guided by a strong set of positioning values, is investigated using a case study of the Palliser Estate Wines' winery of Martinborough, New Zealand. Also analyzed is the paradox facing entrepreneurs—i.e., how day-to-day market activity is critical to market success, while marketing success requires commitment to stability and careful planning, particularly for small firms in markets dominated by larger incumbents. Data were gathered through interviews with Palliser's co-owner and managing director. Six interviews were done between 1998 and 2003. In addition, 50 newspaper and wine magazine articles on Palliser, material from the company's Web site, and financial information provided by the company also provided data for the study. Findings indicate that positioning-driven emergence was an effective form of strategizing over the long term, which enabled Palliser to undertake long-term actions and navigate periods of instability. Conclusions suggest that the market in which the business competes, the scale and scope of activities in the value chain, and the channels used to gain access to the market could be identified in a formal plan or held implicitly and communicated via the actions of the leader and senior staff. (JSD)

Keywords: Wineries & vineyards, Palliser Estate Wines, Business conditions, Competitive advantages, Marketing, Positioning (market strategies), Strategic planning