In the absence of competition, one firm may successfully serve customers with a product that is not exactly adapted to their needs. Then, if a competitor introduces a new product that fits these needs better, it may become necessary to reposition the old product closer to the ideal point.
In all the above situations, products must be repositioned to adapt to new environmental conditions; however, a product does not always need to be repositioned on all dimensions. For instance, a two or three year old product may be perceived as low-performance, but as having the right reliability level. In this case, there is no reason to change the perception along the reliability dimension. Repositioning can be achieved by changing the product’s price, through communication or via R&D.