Explore BrainMass

Explore BrainMass

    Differentiation Strategies

    Product differentiation is one of Michael Porter's three generic strategies for competitive advantage. A company can gain a competitive advantage by creating and marketing unique products - products that are different from what other competitors offer as well as products that are different from the company's own product offerings. Edward Chamberlin proposed the concept of product differentiation in his 1933 book "Theory of Monopolistic Competition."

    Differentiation is not actually designing a product to be different. Differentiation comes from marketing your product as satisfying different needs than competitors. This is done to show the unique aspects of the product and create product value. Differentiation is created when buyers perceive a difference. The main sources of product differentiation are as follows: differences in quality (accompanied by difference in price), differences in functional features, ignorance of buyers regarding characteristics and qualities, sales promotion and activities, and differences in availability.²

    There are three types of product differentiation: simple, horizontal, and vertical. Simple differentiation is variance based on a variety of characteristics.¹ Horizontal variation is based upon a single characteristic but consumers are not clear or aware on the quality.¹ Lastly, vertical differentiation is based upon a single characteristic and consumers are clear on quality.¹ Brand differences in product differentiation are usually minor: they can be anything as small as a difference in packaging to a difference in advertising.

     

     

    References:
    1. Pepall, L., Richards, D. J., & Norman, G. (2005). Industrial organization, contemporary theory and practice. Natorp Boulevard, Mason, Ohio: Thomson South-Western. p. 133.
    2. Butler, J. E. & Jones, G. R. (1998). Costs, revenue, and business-level strategy. Academy of Management Review, 13 (2), 202-213. 

     

    © BrainMass Inc. brainmass.com March 23, 2023, 8:46 pm ad1c9bdddf

    BrainMass Solutions Available for Instant Download

    Zappos: Case Study

    Using the case "Getting Zapped by Promotions" What are the differences between publicity and advertising? How does a sales promotion activity such as the loyalty program help ensure continued customer support? Is Zappos likely to increase or decrease its use of social media in its promotion mix? Why? There is a video on

    Green Ocean Strategy

    What is a Green Ocean Strategy and how it can create differentiation for the brand?

    Google v Apple

    1. What trends in the general environment have influenced these changes in the associated media, hardware and software producer, and broadband provider industries? 2. From the point of view of Apple as the focal firm, which of the five forces seem to be having the most influence on Apple's decision to enter with the Apple TV

    ORGANIZATIONAL DIAGNOSTIC MODELS - Simulation

    If you will do it, I need to know your charge. since I failed to include it previously. Please see the question with the other three parts to the assignment you are working on. I thought it was included but it was not. Please let me know if you can do or if I need someone else to do it for me. Thank you! SLP2 ORGANIZA

    Competitive Advantage for Small E-Businesses

    The research indicates no commonly-used theory appropriately explains small business adoption of e-business because each theory overlooks important aspects of small business characteristics. What seems to be the most noted theory in the literature for e-business strategy is Michael Porter's generic strategies matrix, which theor

    Export Based Companies And Foreign Equity Investment

    Explain and describe one type of business that might be most successful using an export-based strategy, and one type of business that might be most successful using equity investment overseas and explain why each would be successful using the given state.

    Business Strategy and Analysis; Survey Method

    Part 1: Survey Analysis Entertainment Survey Using survey from one of the following sources attached - IP3 survey and IP3 • Describe an entertainment poll or survey. Analyze the number of people who participated in the sample compared to the number in the population. • Discuss how the results of the survey can be used t

    Synergy & Value Propositions

    Aaker, D. A. (2011). Strategic Market Management. Hoboken: John Wiley & Sons, Inc. 1. What is synergy? What are the sources of synergy? Give examples. 2. Consider three industries, such as hotels, appliances, or computers. For three firms within the industry, identify what value propositions are representing their strategy

    External Environment and Brands

    1. Given the importance of understanding the external environment, why do some firms fail to do so? Provide examples of firms that did not understand their external environment. What were the implications of the firm's failure to understand that environment? 2. Several companies use their brand as a competitive advantage. Giv

    Key variables used to bolster competitive traits

    In order to compete internationally and remain viable as an economic power, American business leaders and managers must demonstrate adaptability and flexibility. If you were a senior leader / manager -- a Vice Presidential level position -- in an American Fortune 500 company, what three key variables would you be focusing on in

    Business Strategy: Dell Computers

    Dell Computers is known for revolutionizing the personal computer market using mass customization. This company can turn out a huge volume of computers while still having a variety of options for customers to choose from. Assume that you are the operations manager at Dell Computers. You have just received notification that Dell

    A firm's generic strategy

    With the definition presented next, we can conclude that this refers to a focus strategy: When a firm's generic strategy is based on creating differences in the firm's product or service offering by creating something that is perceived industry wide as unique and valued by customers. T or F

    Multi-Domestic Strategy

    A global strategy is one that emphasizes economies of scale due to the standardization of products and services, and the centralization of operations in a few locations. Meanwhile, a multi-domestic strategy focuses on a firm's differentiation of products and services seeking to adapt to local markets. True or false?

    Seeking to differentiate attributes

    When a firm's strategy seeks to differentiate attributes and lower prices, it is said that this approach is a combination strategy. The reason why some firms seek to use this combination approach is because the advantage is additive. An example of this concept, in a car manufacturing setting, would be when the manufacturers lowe

    Corporate Hedging and Shareholder Value

    I need to know what corporate hedging is and will it increase shareholder value? Also, what are the advantages and disadvantages to this process? I would like references as well.

    Customer Service Management; Checkout Time

    Is check out time at Wal-Mart used to meet the needs or requirements of its (served and/or prospective) target market(s)? If so, how is checkout time used to attain a sustainable competitive advantage? If not, what does Wal-Mart need to do so that it can use checkout time to attain a sustainable competitive advantage?

    Principles of Management: Responsibilities of a Business

    1. A re-organization will require that some employees are provided severance packages while other reassigned. What interpersonal managerial roles developed by Mintzberg will a manager confronted with this employ? Explain. 2. A manager has decided to use the Hawthorne Studies to improve productivity in an office. How would she

    Determining Strategy in Organizations: This solution discusses the differences between different types of strategies and how determine the best strategy for an organization. Is also defines strategic objectives, their purpose, and gives examples of effective strategic objectives

    What are the different types of strategies? What are the differences among these strategies? How do you determine which type of strategy is most appropriate for your organization? What are strategic objectives? What is the purpose of strategic objectives? What makes an effective strategic objective? What are some examples of

    Funder Mifflin Inc.: Strategy Composition

    It is important for us as a company to go back and look at what customer loyalty can mean to a company and also to Funder Mifflin Inc. In the discussion below I will go over different items that can affect customer loyalty and/or how they relate to each other. I will discuss how MySpace lost some of their customer loyalty and

    Nadler-Tushman Congruence Model and Skype Strategy

    Discuss Skype's strategy and determine which one of Porter's competitive strategies fits with this strategy. Review Skype's inputs and determine one or two specific critical inputs from each input category: environment, resources, and history. Then identify the most critical inputs in each of the three categories and justify

    Corporate Strategy and Business Macro-Environment

    1. How does corporate strategy differ from business and marketing strategy? What challenges does management face in developing corporate strategy? 2. What is the business macro-environment? Are certain components more valuable to the marketing plan than others? Explain your response.

    Funder Mifflin Inc. : Maturation of the Social Network Industry

    What is the current maturation of the social network industry? What is a good example of a company that has used the maturation of social media to their advantage? What are the current trends for companies to establish sustainable strategy? What is your current strategic plan? What is the new strategic plan towards maturation?

    Napolo's 8 step process for Nissan

    What did Carlos Ghosn and Nissan do in order to manage global financial risk and why? Did Nissan follow Napolo's (2005) 8 steps? Discuss which steps they did and those they did not follow.

    Differentiation to build formal organizational structure

    Over 300 word response with reference that discusses why differentiation is necessary to build formal organizational structure and whether or not it has any limitations to large organizations. Additionally, discuss the span of control related to both integration and differentiation. Discuss why differentiation is necessary to

    ADVERTISEMENT