Why business needs broad differentiation?

 Facing stiff competition in the market place could be lot more easier if firms perch on an appropriate business manoeuvre that gives optimum results but not maximum results. One such manoeuvre is known as broad differentiation. Here is a preview:

Simply put broad differentiation seeks to highlight the company’s ability to differentiate on the basis of brand name under which it sells its product ensemble from the rivals in the market. Undoubtedly such a business manoeuvre must appeal to wider public who form the bulk of non-segmented market anywhere. There are two aspects: one is the acceptance of the company and its products as representing excellent value proposition that buyers indeed search for. Secondly the price quoted for the line products is equated to value delivered.

To be sure, there must be a well of loyalty towards the firm in the first place followed by the undisputed trust for the products it sells. That brings about the customer acceptance and the willingness to translate it into purchasing patterns. For example repeat purchase of single product and/or line of products of the company. Fundamentally this results in more sales for the company and signals that the premium price charged by the company is indeed, tenable. 

Broad differentiation is actualized in different angles, all of these add-up ultimately, to the value proposition. Examples include, unique features in design, user friendliness, assured reliability and needless to say superior after sales service.

In a specific market where rivals do not have similar product or product that does not have the full complement of the features, the firm enjoys first mover advantages. Having said that, over the period of time rivals can catch up with features and come up with an equal or somewhat superior product. Therefore the critical matter is the firm to continue unabated the path to innovate and spend whale of money in research and development and keep abreast of the trends and fashions in the market.

 

Cheers!

 

Muthu Ashraff Rajulu

Business Strategist

Mobile: + 94 777 265677

E-mail:   cosmicgems@gmail.com

Blog:   Business Strategist