მე 5
მე 5
მე 5
Product
Differentiation
Internal
Analysis
Product Differentiation:
• generate economic value by offering a product
that customers prefer over competitors’ product
Example: Harley-Davidson
Copyright © 2015 Pearson Inc.
Strategic Management & Competitive Advantage – Barney & Hesterly 5-33
Product Differentiation
Product Differentiation
Bases of Differentiation
A base of differentiation must fill some
customer need:
Bases of Differentiation
Bases of Differentiation
Three Categories
1) Product Attributes
• exploiting the actual product
2) Firm—Customer Relationships
• exploiting relationships with customers
3) Firm Linkages
• exploiting relationships within the firm
and/or relationships with other firms
Copyright © 2015 Pearson Inc.
Strategic Management & Competitive Advantage – Barney & Hesterly 5-77
Product Differentiation
Bases of Differentiation
Product Attributes
Bases of Differentiation
Firm–Customer Relationships
Bases of Differentiation
Firm Linkages
• Linkages among Functions in the Firm—using a
circuit board designed in one division in other
divisions
Bases of Differentiation
Firm Linkages
Competitive Advantage
Is it Rare?
Is it costly to Imitate?
ATCind Pff
ATCff
Pind Dind
Dff
MRff
Qind Qff
Above Normal
Profits
Emerging Industry
Declining Industry
Exploiting niches: serving those with strong needs
Example: NEWT at the Royal Hawaiian
Easy
Duplication
of Bases
Timing Product Mix
Usually May be
Location Product complexity
Costly Costly
Reputation Links with other firms
Links between functions
Product customization
Distribution Channels
Consumer marketing
Service and Support
Substitutes
• Some substitutes may be obvious.
Summary
• Product differentiation creates customer preferences.
ATCind Pff
ATCff
Pind Dind
Dff
MRff
Qind Qff
Above Normal
Profits