The purpose of this paper is to contribute to the recent body of research exploring strategic positioning, and the processes and factors which influence the development and content of university strategies and plans, with lessons then applied to open questions of institutional diversity and its determinants. Following a sector level analysis of the contents of university positioning documents, an in-depth case study is developed of a large Australian university, where the interaction of intra-institutional 'meso' layers is explored to show a confluence of factors contributing to positioning. The case demonstrates that institutional positioning involves the selective crafting of narratives for multiple purposes, including the seeking and portrayal of internal cohesion, identity enhancement, and resource seeking. Importantly, while cross-institutional comparison of positioning narratives portrays an undifferentiated and somewhat homogenous sector, positioning is found within the case institution to obscure what is significant internal diversity and complexity. The implications of these findings for research exploring institutional diversity, and policies seeking to stimulate it, are discussed.