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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						            	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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