Product Differentiation wps产品差异化 WPS.prenhall.pptVIP

Strategic Management Competitive Advantage - Barney Hesterly Strategic Management Competitive Advantage – Barney Hesterly * Product Differentiation Copyright ? 2008 Pearson Prentice Hall. All rights reserved. 5-* Product Differentiation Copyright ? 2008 Pearson Prentice Hall. All rights reserved. 5-* Chapter 5 Mission Objectives External Analysis Internal Analysis Strategic Choice Strategy Implementation Competitive Advantage The Strategic Management Process Business Level Strategy Corporate Level Strategy How to Position a Business in the Market? Which Businesses to Enter? Business Level Strategies Two Generic Business Level Strategies Cost Leadership: ? generate economic value by having lower costs than competitors Product Differentiation: ? generate economic value by offering a product that customers prefer over competitors’ product Example: Wal-Mart Example: Harley-Davidson Product Differentiation A business level strategy intended to: ? increase the perceived value of the focal firm’s products and/or services relative to the value of competitor’s products and/or services ? create a customer preference for the focal firm’s products and/or services Bases of Differentiation A base of differentiation must fill some customer need: ? image ? status ? comfort ? taste ? beauty ? style ? furthering a cause ? reliability in use ? safety ? nostalgia ? cleanliness ? service ? quality ? accuracy ? hunger ? belonging A differentiated product fills one or more needs better than the products of competitors Almost anything can be a base of differentiation ? tangible thing (product features, location, etc.) ? intangible concept (reputation, a cause, an ideal, etc.) ? limited only by managerial creativity Bases of Differentiation ? the wide range of customer needs can be filled by a wide range of bases of differentiation Example: Fred Smith and FedEx Bases of Differentiation Three Categories 1) Product Attributes 2) Firm—Customer Relationships 3