Published on January 17, 2009
Building strategic differentiation: The top priority of industry leaders www.quadric.dk Copyright © Quadric® 2009
Differentiation was once a choice of strategy, today it needs to be part of any strategy
Differentiation guides decisions Copyright © Quadric® 2009 3
Volvo owns ”safety,” BMW owns ”the experience” Positioning Operational statement evidence Leadership in: Safety systems innovation For life. Superior crash test performance Leadership in: The ultimate Combining performance, style Copyright © Quadric® 2009 driving machine. and luxury Superior engineering 4
UPM owns ”continuous improvement,” StoraEnso owns ”innovation” Positioning Operational statement evidence Leadership in: Customer relationship management We lead. Quality improvement programs We learn. Wood tracking and certification Leadership in: Product range What paper can do. Copyright © Quadric® 2009 R&D pushing the boundaries of paper Promoting new applications 5
Industry leaders add strategic differentiation to traditional business strategy Traditional business strategy Strategic differentiation + Targeting a desired industry ranking Targeting a desired reputation + Optimizing a portfolio of businesses Optimizing a portfolio of brands + Aligning organization with strategy Aligning culture with desired reputation + Marketing drives sales Marketing also drives positioning + Tracking financial performance Tracking positioning performance Copyright © Quadric® 2009 = Industry leadership 6
Traditional strategy is developed and managed through the organization Copyright © Quadric® 2009 Traditional strategy 7
”Strategic differentiation” is developed and managed across the value chain Investors Suppliers Company Distributors Dealers/ End-users Influencers retailers Copyright © Quadric® 2009 Strategic differentiation 8
This requires changing management priorities, not organizational structure Traditional business strategy Strategic differentiation + Investors Suppliers Company Distributors Dealers/ End-users Influencers retailers Copyright © Quadric® 2009 Developed and managed Developed and managed through the organization through the value chain 9
www.quadric.dk Copyright © Quadric® 2009
Differentiation means that when your competitors zig, you must, as Marty Neumeier suggests in the title of his 2006 best-seller, zag. Instead of offering ...
Definition of differentiation strategy: Approach under which a firm aims to develop and market unique products for different customer segments.
View 635 Strategic Differentiation posts, presentations, experts, and more. Get the professional knowledge you need on LinkedIn.
In economics and marketing, product differentiation (or simply differentiation) is the process of distinguishing a product or service from others, to make ...
Our goal is to make our clients the purchase, partner or investment of choice. The Craft delivers strategic differentiation and competitive positioning.
Strategic management involves the formulation and implementation of the major goals and initiatives taken by a company's top management on behalf of owners ...
Pros & Cons of Differentiation Strategy by Randolf Saint-Leger, Demand Media . Companies with a unique product may employ a differentiation strategy.
Differenciation strategy. ... Product differentiation can also be an important strategic option in a declining industry. ... Organizing forsustained ...
Porter's Generic Strategies. If the primary determinant of a firm's profitability is the attractiveness of the industry in which it operates, an important ...
Beat the competition, no matter what industry you're in, with Michael Porter's Generic Strategies. Includes tips on how to apply each strategy.