The Risks of Not Differentiating
Bernhard Keim, Business Consultant, Germany, Premium Member
The risks of differentiation can be reduced by testing the customers you have in mind. And, beyond that, what I also know is that doing what everyone else is doing, can be at least as risky.
Some time ago I had to provide advice to a supermarket in Eastern Europe. For some time it was a sure bet to open just another supermarket, providing more or less the same goods in the same way as everyone else. But then the marketplace got crowded. So there was little left for further growth. Nevertheless no one dared to break out. There were no discounters in the city and no one wanted to be the first one. Now German chains arrived at the market, taking away existing customers with new shop-formats. Because no one wanted to be different, the existing owners provided an open invitation to newcomers. They all lost.