Tilt
How can you design successful differentiation strategies in saturated markets?
Author(s): Niraj Dawar
Publisher: Harvard Business Review Press
Date of publication: 2013
Manageris opinion
How can you build lasting competitive advantage in environments saturated with products and innovations? There are few industries today where products are still sufficiently differentiated to ensure customer loyalty. Competition is intensifying on all fronts. Under these conditions, it’s tough to preserve margins and growth. In this book, Niraj Dawar offers many detailed examples of successful differentiation strategies. They have in common the fact that the stumbling block of product commoditization is overcome by proposing solutions to customers rather than just the products themselves. He cites many well-known examples: Nestlé and the Nespresso machine, Amazon.com and Dell—but also some lesser-known and very interesting B2B illustrations, such as a supplier of explosives for stone quarries, and a cement maker. This book will encourage leaders to take a closer look at the psychology and the economic constraints of their customers to come up with new value-added offerings.
See also
Differentiate yourself in saturated markets
In saturated markets, competitors generally fight on commercial presence and price. Yet, there are other ways for businesses to differentiate themselves. How can you play on services and positioning to gain a competitive edge?