What are the Risks of a Differentiation Strategy?

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Competitive Advantage > Best Practices > 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? (...) Read more? Sign up for free

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  Pitfalls of a Differentiation Strategy
Jaap de Jonge, Editor, 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
  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?

  The Risks of Not Differentiating
Bernhard Keim, Business Consultant, Germany, Premium Member
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Competitive Advantage
Summary
Forum
Weaknesses of Porter's Three Basic Types of Competitive Advantage
Why are Firms Different? Why Successful Firms Differ?
🔥The Role of AI in Competitive Advantage
Best Practices
🥇Quotes Competitive Advantage
🥈10 Routes to Competitive Advantage
🥉Case studies in "Cost Leadership"
Stuck in the Middle?
How Can Logistics Help to Achieve a Competitive Advantage?
Changing from a Cost Leadership Strategy Into Differentiation
Competition versus Cooperation
Competitive Advantage or Die?
What is Competitive Advantage?
Competitive Advantage in a Monopolistic Market?
Life Cycle Approach to Competitive Advantage
Health/Fitness Club Industry Analysis
Focus your Efforts in Building Competitive Advantage
What are the Risks of a Differentiation Strategy?
Competitive Advantage in Tough Times
4 Stages of Hypercompetition
Knowledge Management is more important than CA
Cost and Value in Analysis of Competitive Advantage: 2 Sides of the Same Coin?
Successful Companies: Only Three Rules Needed?


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