What are the Risks of a Differentiation Strategy?

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What are the Risks of a Differentiation Strategy?

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


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.

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?

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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