Differentiate your strategy
In an established market and with heavy competition, different and new value proposal can help the company to expand his current market. This helps to gain competitive advantage, higher rentability. But it has some drawbacks, for instance:
- Quality shall be always a priority even tough the differentiation is done by he price.
- You may need to adapt branding or new product name, to avoid customer to be lost and to affect the existing proposal.
- You may need to acquire new companies to expand abroad. It can have a huge cost but it can have some benefits to use the existing people strength and cultures.
- High value added products bring always better revenue to the company compared to mass market product.
- Industrialisation and robotisation of your process to produce faster, and bigger
- Add new service to your product
- The offer shall have a significant value for the customer
- It shall be economically viable for the company
- The offer shall be defendable in front of the competitors trough protection, trade secret practice, etc…
The blue ocean strategy consists in identifying new business opportunities to create a new market. This strategy is helpful when an existing market is satured. Steps:
- If you are in an defined market, identify your competitors
- Draft the value added criteria, function, product for the client in the market. Cf below example.
- Identify new criteria where your competitor is not present for the same application
Examples:
New vine cut with fruits perfume
Instead of selling tires, membership can be created for dedicated professional platform, to handle all the constraints from the client.
