Business Strategy

Formulation, Modelling &

Planning
Creating Differentiation III
Enrichmentors Building Businesses, People, Wealth & Health Successfully over 40 years
 Purpose
The purpose of the module is to help you understand in depth how
to create differentiation to formulate Winning Business Strategy,
Model and Plan
At the end of this lecture you will learn the following
• Sources of differentiation
• Drivers of uniqueness in value chain
• Creating value for buyer that justifies price premium
• Role of perceived value in addition to actual value
• Routes to creating differentiation
• Making differentiation sustainable
• Pitfalls and Steps
• How has J&J Baby Powder created differentiation
Enrichmentors Building Businesses, People, Wealth & Health Successfully over 40 years
 Does uniqueness alone sufficient for differentiation?

Enrichmentors Building Businesses, People, Wealth & Health Successfully over 40 years
 Uniqueness does not lead to differentiation unless valuable to the buyer

➢ A successful differentiator finds ways for creating value that yields

price premium in excess of the extra cost

➢ Starting point of creating value to understand the buyer’s value chain

➢ Buyers’ value chain determines the way a firm’s product is actually

used as well as firm’s other effects on buyer’s activities

➢ There determine the buyer needs and are the underpinnings of the
buyer value and differentiation

➢ What is valuable to buyer grows out of how a product and firm

supplying it affects the buyer’s value chain

Enrichmentors Building Businesses, People, Wealth & Health Successfully over 40 years
 How can a firm create value for buyer that justifies price premium?

Enrichmentors Building Businesses, People, Wealth & Health Successfully over 40 years
 How can a firm create value for buyer that justifies price premium?

Enrichmentors Building Businesses, People, Wealth & Health Successfully over 40 years
 How can we lower buyer’s cost or raise buyer performance?

Enrichmentors Building Businesses, People, Wealth & Health Successfully over 40 years
 Lowering Buyer’s Cost significantly

Enrichmentors Building Businesses, People, Wealth & Health Successfully over 40 years
 Lowering Buyer’s Cost significantly- Illustrations

Enrichmentors Building Businesses, People, Wealth & Health Successfully over 40 years
 Raising buyer performance

Enrichmentors Building Businesses, People, Wealth & Health Successfully over 40 years
 Raising buyer performance

Enrichmentors Building Businesses, People, Wealth & Health Successfully over 40 years
 Raising buyer performance

Enrichmentors Building Businesses, People, Wealth & Health Successfully over 40 years
 What is in it for you in next module?
Are these two sufficient to create value for buyer that justifies price premium?

Enrichmentors Building Businesses, People, Wealth & Health Successfully over 40 years
 Thank You
for watching the

How toDifferentiation
Creating get calls for an III
Interview forofdesired role
Deep Dive
Business Strategy Formulation,
Modelling & Planning
Enrichmentors Building Businesses, People, Wealth & Health Successfully over 40 years