The increasing competition among domestic cities has led to the necessity of developing a strategic city positioning marketing strategy. Accordingly, the present study aimed to propose a strategic city brand positioning model for Qeshm Island. In terms of research philosophy, this study is interpretive. Regarding its orientation, it is applied research; in terms of method and approach, it is qualitative-inductive; and in terms of research strategy, it follows a grounded theory approach. Data collection methods in this research included library research and document review, along with semi-structured interviews. The participants of this study were experts in the field of marketing and strategic planning. Sampling was conducted using the snowball method based on the principle of theoretical saturation, and ultimately, data were collected through semi-structured interviews with 13 participants. The collected data were analyzed using open, axial, and selective coding, leading to the development of research propositions and model formulation. The research findings indicated that the causal conditions include global competitiveness, regional brand image formation, stakeholder participation, and regional development planning. The contextual conditions encompass regional infrastructure, tourism attractions, investment capacity, and integrated regional management. The intervening conditions consist of regional challenges and political policymaking. The core phenomenon identified is strategic city brand positioning. The strategies include strategic positioning planning, strategic brand positioning management, place-based marketing strategies, physical infrastructure development, and cultural promotion. The outcomes encompass social, marketing, and economic impacts.