differentiation

Examples of differentiation in the following topics:

• Porter's Competitive Strategies

  • Michael Porter classifies competitive strategies as cost leadership, differentiation, or market segmentation.
  • Porter identifies two competencies as most important: product differentiation and product cost (efficiency).
  • Differentiation is less tangible and easily defined, yet still represents an extremely effective strategy when properly executed.
  • Differentiation refers to a firm's ability to create a good that is difficult to replicate, thereby fulfilling niche needs.
  • Discuss the value of using Porter's competitive strategies of cost leadership, differentiation, and market segmentation

• The Challenge of Competition

  • Avoiding the risks of competitive factors demands a strong understanding of operational efficiency (low cost), quality production, differentiation, and competitive advantage—or who you target and whether or not you have a cost or quality advantage (see figure below).
  • Differentiation is a competitive tactic wherein companies approach certain niche needs within an industry to capture a segment of the market share.
  • An example of differentiation might be cereal.
  • The producers of these cereals use differentiation to capture a share of the cereal market: some brands focus on their organic nature, others their sugary appeal, and still others on being "cool."
  • Describe competitive strategies such as low cost, differentiation, and internal competition and the role of the external competitive landscape in developing them

• Introduction to Red Ocean and Blue Ocean Strategy

  • Identifying ways to create a new market, new niche or new differentiated strategy that creates more pie (as opposed to competing over an existing one) is a superior approach.
  • The second figure illustrates this well, as the substantial value added lies in differentiating into new strategies to capture new market share as opposed to competing for established market share.
  • The red ocean/blue ocean analogy itself is demonstrating significant staying power, and the observation that differentiation towards innovative business models (not strictly innovative products) is an important objective for future strategists.
  • An excellent overview of the components of blue ocean strategy, particularly highlighting the trajectory of differentiation
  • The difference between the two concepts, where red is more conservative and cost-cutting and blue is creative and differentiating

• Differences Between Strategic Planning at Small Versus Large Firms

  • Because of this constraint, smaller firms most often use differentiation strategies that focus on innovation over efficiency.

• Global Strategy

  • Differentiation strategies also enable economies of scope, either fulfilling different needs in different markets with a similar series of products, or developing new products based upon the needs and consumption habits of a new market.
  • Differentiation as part of a global strategy will often require localization, as organizations must adapt to consumer tastes better to compete in the new country.

• Forecasting

  • Following are a few critical points of differentiation and specific strategies to keep in mind when forecasting.
  • One of the simplest points of differentiation between methods is the reliance on numbers for accuracy.

• Transactional Versus Transformational Leaders

  • Differentiate between transactional leaders and transformational leaders in a full-range approach, particularly from a behavioral perspective

• Types of Decisions

  • Differentiate between the three primary decision-making approaches: avoiding, problem solving, and problem seeking

• Benefits of Innovation

  • Innovative employees increase productivity through by creating and executing new processes, which in turn may increase competitive advantage and provide meaningful differentiation.

• Differences Between Groups and Teams