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last activity : 07 06 2010 20:18:04 +0000
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Provides defenses against competitive forces
- RIVAL COMPETITORS - Buyers develop loyalty to brand they like best
- BUYERS - Mitigates bargaining power of large buyers since other products are less attractive
- SUPPLIERS - Seller may be in better position to withstand efforts of suppliers to raise prices
- POTENTIAL ENTRANTS - Buyer loyalty acts as entry barrier
- SUBSTITUTES - Better positioned to fend off threats of substitutes based on customers’ attachment to differentiating attributes
WHAT KIND OF DIFFERENTIATION TO PURSUE
- Most appealing types of differentiation strategies
- Those LEAST subject to imitation
- Most likely to produce an attractive, longer-lasting edge when it’s based on:
- Technical superiority
- Quality
- Giving customers more support services
- Giving customers more value for money
- Core competencies
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