Key to successful differentiation consistency of all aspects of the firms

Key to successful differentiation consistency of all

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Key to successful differentiation : consistency of all aspects of the firm’s relationship with its customers. Product Integrity : the total balance of product features Internal integrity: consistency between function and structure External integrity: fit between the product and customers’ objectives, values, and lifestyle Successful differentiation strategies achieve consistency of internal and external integrity (e.g. Harley-Davidson, Apple, Starbucks) Product Integrity © 2019 Robert M. Grant, DIFFERENTIATION ANALYSIS
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Linkages: 1. Distinctive can design can assist canners’ marketing activities. 2. High manufacturing tolerances can avoid breakdowns in customer’s canning lines. 3. Frequent, reliable delivery can permit canner to adopt JIT can supply. 4. Efficient order processing system can reduce customers’ ordering costs. 5. Competent technical support can increase canner’s efficiency of plant utilization. S u p p l i e s o f s t e e l & a l u m i n u m s t r i p S e r v i c e & t e c h n i c a l s u p p o r t S a l e s D i s t r i b u t i o n I n v e n t o r y h o l d i n g M a n u f a c t u r i n g D e s i g n E n g i n e e r i n g I n v e n t o r y h o l d i n g P u r c h a s i n g D i s t r i b u t i o n M a r k e t i n g C a n n i n g P r o c e s s i n g I n v e n t o r y h o l d i n g P u r c h a s i n g CANNER CAN MAKER 1 2 4 5 3 Using Value Chains Linkages to Identify Differentiation Opportunities: Can Manufacture © 2019 Robert M. Grant, DIFFERENTIATION ANALYSIS
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Features of Cost Leadership and Differentiation Strategies © 2019 Robert M. Grant, Generic strategy Key strategy elements Resource and organizational requirements Cost leadership Scale-efficient plants Design for manufacture Control of overheads and R&D Process innovation Outsourcing/offshoring Avoiding marginal customers Access to capital Process engineering skills Frequent reports Tight cost control Specialization of jobs and functions Incentives linked to quantitative targets accounts Differentiation Emphasis on branding advertising, design, service, quality, and new product development Marketing abilities Product engineering skills Cross-functional coordination Creativity Research capability Incentives linked to qualitative performance targets COMBINING COST AND DIFFERENTIATION STRATEGIES
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