What are the Risks of a Differentiation Strategy?

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Competitive Advantage Knowledge Center

Best Practices Sign up john Student (University) What are the Risks of a Differentiation Strategy? What are the risks involved when using differentiation as a competitive strategy? Why? X Welcome to the Competitive Advantage best practices. The topic of this particular best practice is: "What are the Risks of a Differentiation Strategy?". Please register now to read all responses and to join this discussion yourself. Log in   Jaap de Jonge Editor, Netherlands   Pitfalls of a Differentiation Strategy In my opinion, the main risks of a differentiation strategy are: 1. Differentiation is not sustained, because 1a. Competitors imitate. 1b. A base for differentiation becomes less important to buyers. 2. Cost proximity is lost (overly expensive). 3. A differentiation focuser achieves even greater differentiation in the same segment.   Joao Viggiani Consultant, Brazil   Keys to Differentiation Strategy Inovation is one key to sustain a differentiation strategy. Services is another key. But, most of all, go back to Porter: "strategic positioning means performing different activities from rivals or performing similar activities in different ways". With only 7 keys we have millions of different musics. Why not with business activities?   Bernhard Keim Business Consultant, Germany   The Risks of Not Differentiating The risks of differentiation can be reduced by tes (...) Participate and leave a comment Share your opinion, knowledge and experience or ask a question (sign up for free first) Start a new forum topic

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