Harvards Michael Porter, has consistently argued the case for firms to develop a distinctive strategy, based on positioning and supported by OE Tools and the integration of E-Commerce/Internet applications. Porter argues that his "Generic Strategies" (cost leadership, focus and differentiation) are the starting points for developing a distinct positioning strategy. The essence of strategy is in "activities" (actions) - choosing to perform activities differently or perform different activities than rivals which deliver a unique mix of value to the customer.
Many firms confuse strategic positioning with customer segmentation, instead firms should think of positioning in three non-mutually exclusive, possibly overlapping ways.
See the three ways you should think about positioning your business