What is the purpose of strategic positioning?

Strategic positioning is concerned with the process as to how a business distinguishes itself in a valuable way from other companies, at the same time delivering value to particular customer segments. This can be achieved through two strategies, namely differentiation and cost leadership. The purpose is to find a market position that is either differentiated from their competitors or at a comparatively lower cost to edge over the competitors. It helps builds a practical value proposition for products or services in the market that are both profitable and defendable. But it's not restricted only to products or services but is much more comprehensive and entails the entire business. As the competition rises, effective strategic positioning serves as a way for the company to hold its ground.