A differentiation strategy is addressing a broad market scope but develops unique products and services. Innovation strategies must identify the business approach and understand responses to competitor attacks. Read the full post at www.globalnpsolutions.com

1. Idea Insights from GNPS
Differentiation Strategy
(Classic Framework)
Episode 15-40
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2. Idea Insights from GNPS
Classic Strategy Framework
• Many literature approaches to strategy
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Narrow
Market
Scope
Broad
Market
Scope
Uniqueness
Competency
Low Cost
Competency

3. Idea Insights from GNPS
Differentiation Strategy
• Serves broad market (no segmentation)
• Company offers unique products or service
• Customers perceive a difference from mass market or cost
leaders and value the difference
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4. Idea Insights from GNPS
Benefits
• Benefits of Differentiation Strategy
• Higher profit margins
• Same cost of production
• Perceived benefits = higher price
• Command brand loyalty
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5. Idea Insights from GNPS
Disadvantages
• Small market share
• Cannot lose quality focus
• Perceived difference = $
• Time to market is critical
• Continued innovation
• Process improvements
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6. Idea Insights from GNPS
Attacking the Strategy
• Introduce high quality standardized product
• Add a service package to existing product
• Full product line (up-market, down-market)
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7. Idea Insights from GNPS
For More Information
• See the full post at the Idea Incubator Blog
• www.globalnpsolutions.com/idea-incubator/
• Free registration
• Contact me!
• 1-281-280-8717
• info@globalnpsolutions.com
• 2323 Clear Lake City Blvd., #180-177
Houston, TX 77062
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