Special Report on
Product Differentiation Strategy
Product Differentiation Strategy - Trends
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ffered under different brands by competing firms, products fulfilling the same need typically do not have identical features. The differentiation of goods along key features and minor details is an important strategy for firms to defend their price from levelling down to the bottom part of the price spectrum. Within firms, product differentiation is the way multi-product firms build their own supplied products' range. At market level, differentiation is the way through which the quality of goods is improved over time thanks to innovation . ...
As we discuss in class when contrasting cost leadership vs. product differentiation strategies, the cost leader is in a dangerous position. All it takes to knock of a cost leader is for someone to be even cheaper…not that cost leaders can’t be successful (Costco, Walmart, etc.) but the majority of firms need to offer value that they can charge a fair price for without racing to the bottom to be the cheapest provider. This article is for everybody else: those who choose not to compete on the basis of cost and low price. This article is for companies that can and should ... Read More
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