What are the Risks of a Differentiation Strategy?




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john
Student (University)

What are the Risks of a Differentiation Strategy?

What are the risks involved when using differentiation as a competitive strategy? Why?
 

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4
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.

 
1
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?

 
2
Bernhard Keim
Business Consultant, Germany
 

The Risks of Not Differentiating

The risks of differentiation can be reduced by testing the customers you have in mind. And, beyond t... Sign up

   

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