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Strategic Management Kajal Makwana Jay Sir
Strategic Management Kajal Makwana Jay Sir
Competitive advantage:
An advantage over competitors gained by offering greater customer value, either through lower prices or by
providing more benefits that justify higher prices.
• Product differentiation
• Service differentiation
• Channel differentiation
• People differentiation
• Image differentiation
Product differentiation
product differentiation brands can be differentiated on features, performance, or style
and design.
Service differentiation
Service Differentiation is based on aspects such as speedy or careful delivery, opening
hours, customer care etc. Thus, the service is differentiated. For instance, an airline could
differentiate itself by means of extraordinary customer care and very attentive and
graceful stewardesses. This type of differentiation may then become experience
differentiation.
Channel differentiation
A firm can also gain competitive advantage by channel differentiation. This means that
the firm differentiates itself by differentiating their channel’s coverage, expertise and
performance. So how does the firm get goods to the customer? It might be through a
smooth-functioning, speedy direct channel.
People differentiation
Companies can also differentiate themselves by people differentiation. People
differentiation means nothing else than hiring and training better people than competitors
do. Staff can be more friendly, competent, courteous etc. Certainly, this mainly appeals
to customer contact staff.
Image differentiation
Image Differentiation refers to the image a company or a brand has in consumers’ minds.
The development of a strong and distinctive image requires creativity and a lot of work.
Only over a long period, an image in consumers’ minds can be attained. If you want to
differentiate your company by high quality, this image must be supported by absolutely
everything your company does. An aid for image differentiation are symbols, such as the
Nike swoosh or Apple’s logo
Choosing the right competitive criteria advantage
Important: The difference delivers a highly valued benefit to target buyers
Distinctive: Competitors don’t offer the difference or the companies can offer in a more
distinctive way
Superior: The difference is superior to other ways that customers might obtain the same
benefit
Communicable: The difference is communicable and visible to buyers.
Preemptive : Competitors cannot be copy
Affordable : Buyers can offered to pay for the difference
Profitable : Companies can introduce the difference profitably
Selecting an overall positioning strategy
More for More More Benefits More price • Not only is the market offering high in
quality, it also gives prestige to the buyer.
More for the Same More Benefits The same price
The Same for Less Benefits Price
Less for Much Less Benefits Price
More for Less Benefits Price
Positioning Statement
A statement that summarizes company or brand positioning—it takes this form: To target
segment and need our brand is concept that point-of-difference.
“To busy, mobile professionals who need to always be in the loop, BlackBerry is a
wireless connectivity solution that gives you an easier, more reliable way to stay
connected to data, people, and resources while on the go.”
THANK YOU