Is the act of designing a set of meaningful differences to distinguish the companies offering from competitor’s offerings?
Is the act of designing a set of
meaningful differences to distinguish the companies offering from competitor’s
offerings? The number of differentiation opportunities varies with the type of
industry. The Boston consulting group has distinguished four types of
industries based on the number of available competitive advantages and their
1. Volume industry : One in
which companies can gain only a few, but
rather large,competitive advantages.
Stalemated industry : One in
which there are a few potential competitive
advantages and each is small.
Fragmented industry: One in
which companies face many opportunities
for differentiation, but each opportunity
for competitive advantage is small.
Specialised industry : One in
which companies face many differentiation
opportunities, and each differentiation can have a high payoff.
Theodore Levitt in one of his books “Marketing Success, through
differentiation of anything” explains that in a market place, there is no such thing as commodity .All goods and services are
differentiable. In a market place differentiation is everywhere .All the
companies try to distinguish their offer from that of their competitor. This is
true of even those who produce and deal in primary metals, grains, chemicals,
plastics and money. Starting from technology to plant location to post sale
service firms to the personnel/procedures employed for various functions like
sales, production etc., and companies can differ their offers in many ways.
Companies usually choose those functions, which give them greatest relative
Tags : MARKETING MANAGEMENT - Concept Of A Product
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