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