What are the Risks of a Differentiation Strategy?

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Competitive Advantage > Forum > What are the Risks of a Differentiation Strategy?

What are the Risks of a Differentiation Strategy?
john, Student (University), Member
What are the risks involved when using differentiation as a competitive strategy? Why? 		 

 
Pitfalls of a Differentiation Strategy
Jaap de Jonge, Management Consultant, Netherlands
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.
 

 
Keys to Differentiation Strategy
Joao Viggiani, Consultant, Brazil, Member
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The Risks of Not Differentiating
Bernhard Keim, Business Consultant, Germany, Premium Member
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