8. Step 4 - Map Step 4: Map your strengths and weaknesses relative to competitors Your current competitive differentiation Important to the market and you have an advantage over competitors Open areas of differentiation Important to the market; all competitors are seen to be on par; and you could hold and defend the dimension Weakening a competitor Competitor advantages you can undermine Lost causes Differentiation you can never hold Threshold Conditions Once a threshold is met no additional value is provided by better performance
9. Competitor’s Advantage High value Low value Initial Cost Trust Financial Viability Resources Customized Suite solution Sector Exp. Nimble Core Feature Ongoing Cost Lost cause Current competitive differentiation Opportunity for differentiation Opportunity to weaken competitor Threshold Condition Step 4 - Map Your Advantage
10. Step 5 - Manage DEFEND Important to the market and you have an advantage over competitors. ATTACK Important to the market and no-one owns it. Competitors aim here, so should you. LOST CAUSE Important to the market and competitors have an advantage over you. IGNORE Not currently important, but keep an eye on changes. CHANGE Not currently important Invest elsewhere or drive up the value. PARITY Not important Everyone’s the same Threshold conditions are often here. High value Low value Theirs Yours In-Play Step 5: Manage the areas where you have the most control and the changes that will have the most long term value
12. Outcomes: benefits Using a systematic approach to mapping your competitive differentiation provides benefits across the organization Realistic assessment The process provides a realistic assessment of your strengths and weaknesses relative to competitors based on market perceptions. Shared understanding It provides a means of developing and sharing a mutual understanding among internal stakeholders of your competitive position. Market priorities The process identifies the market’s priorities when selecting vendors – the things that matter most. Effective investment The process identifies where investment of resources will pay the most dividends and where it is unlikely to make a difference. Comprehensive insights The insights gained can be applied across key business processes including messaging, sales and product development.
![[object Object],Competitive Differentiation Mapping: What is it and why is it important? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Map your competitive differentiation which helps communicate to internal stakeholders such as the sales force, engineering and customer service, why, where and how changes need to be made. Focus on what your market cares about– your competitive differentiation is defined by your customers and prospects, not by you. Compare product lines and market segments objectively. Apply resources where they are likely to make the most difference.](data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7)