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Differentiation advantages

The enterprise can provide customers with satisfaction
Differentiation Advantage refers to the ability of an enterprise to provide customers with a unique product or service that meets their special preferences, thus enabling the enterprise to have differentiated and differentiated competitive advantages different from its competitors.
Chinese name
Differentiation advantages
Foreign name
Differentiation Advantage
Meaning
An enterprise can provide customers with satisfaction
Features
Seize the opportunity and pursue the advantages and disadvantages

meaning

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The so-called "differentiation advantage" has two basic meanings:

Differentiation

The first is "differentiation", that is, differences from competitors, which highlights the individuality of the enterprise and requires the enterprise to Price Or services Promotion And other competitive means to develop a long-term niche with characteristics, which is what enterprises seek competitive edge , the foundation of building a competitive fortress.

advantage

The second is "advantage", that is, not only to form a difference with competitors, but also to make this difference enterprise Competitive advantage of This requires that the difference selected by the enterprise must have competitive value and resource capability. Difference is the method of concentration, while advantage is the purpose of concentration.

Necessity of creation

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overview

In order to reduce conflicts and survive in fierce competition, modern enterprises must develop different viability and skills from other enterprises, understand that any advantage comes from difference, expand and use all available resources to fill the ecological gap in the enterprise ecosystem, and find the position where they can best play their role, So as to find space for survival and development. Under the condition of limited resources, in order to obtain the maximum competitive advantage, enterprises should focus on their own differentiated advantages, give full play to their own advantages, make full use of external resources, and effectively integrate external resources and forces to reduce cost , improve competitive power The purpose of. The necessity of creating differentiated advantages is mainly reflected in the following aspects:

Inevitable choice

Creating Differentiated Advantages Is the Enterprise's Follow“ Survival of the fittest ”The inevitable choice of the basic principles of
"Survival of the fittest" is not only the law of natural evolution, but also enterprise operation If the enterprise cannot adapt to the changes in the external environment well, it is likely to fail in the competition and be market Eliminated. Any enterprise operator must choose the industry and products that he thinks are the most promising for him to develop, and choose those with competitive advantages sunrise industry And products. However, it is a pity that the enterprise itself is bounded rationality It often fails to make a correct judgment on itself and the market. In the competition, it shows the "swarm effect", that is, what industries and products are hot, it will rush to do. As a result, the market soon reached saturation, profit The decline has led to losses of enterprises and even the whole industry. The reason is that the enterprise has not carefully carried out differentiation analysis to find out its own advantages and disadvantages, which environment is favorable to itself, and which environment is unfavorable to itself. It seems to be a profitable industry to set foot blindly. Once the enterprise has no differentiation advantage market competition You are bound to fail. Only by carrying out their own differentiated comparison, clarifying their own advantages, and in an appropriate environment to make their own advantages play out, better than competitors, can they stand firm in the market. Differentiation advantage is the basis for modern enterprises to adapt to the market.

Necessary guarantee

Creating Differentiated Advantages Is Enterprise Implementation strategy of sustainable development Necessary guarantee of
Since the middle of the 20th century, due to the new technological revolution, the ecological environment of enterprises has undergone tremendous changes Core competitiveness The survival competition mode of industrial society enterprises supporting the sustainable survival of enterprises collapsed. Under the new technological ecology, new technologies new product There are no products and technologies that can not be imitated or surpassed. The new technological revolution has produced huge productivity. The competition among enterprises has saturated the same products as soon as they appear. No enterprise can rely on some specific technologies and products to gain an advantage in the competition. Therefore, with the change of external environment and internal conditions, enterprises should adjust their management strategy And strategies, seek for differentiated advantages, and create differentiated advantages, which can be realized sustainable development Instead of dying in the disorderly market competition. The key to the development of modern enterprises is to use their own advantages to create differences and create unique advantages.

Basic Introduction

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Seize the opportunity and pursue the advantages and disadvantages
The external environment includes many factors, some of which are beneficial to the enterprise and may bring some opportunities to the enterprise. For example, loose policies and technological progress may create conditions for the enterprise to reduce costs and increase sales; Some factors are not conducive to the development of enterprises, such as Tight credit raw material Price rise tax revenue Increase, new competitors appear Weak market Etc.
1. Pay attention to combining with the specific capabilities of the enterprise. Opportunities and threats are relative concepts, which are closely related to the strength of enterprises' capabilities. Environmental change may be an opportunity for one enterprise and a threat to another. For example, when the domestic currency appreciates, it is an opportunity for import oriented enterprises and a threat for export oriented enterprises. Therefore, the judgment of opportunities and threats should vary from enterprise to enterprise and should not be mechanically applied.
2. Pay attention to correctly identify opportunities and threats. Environmental factors are complex and changeable, and opportunities and threats are not so intuitive and visible. Whether opportunities and threats can be correctly identified often depends on the subjective judgment and experience accumulation of analysts and operators. As far as opportunities are concerned, they not only need to be good at finding, but also need to be actively created sometimes. Conforming to the old ways may turn a blind eye to opportunities, fear failure and treat opportunities as opportunities risk And dare not step over the minefield. Therefore, the analyst's keen sensitivity to environmental changes creativity Of thinking The spirit of pioneering is very important for correctly identifying opportunities and threats.
Identify advantages and avoid disadvantages
The internal advantages of the enterprise are relative to the competitors, which are shown in capital , technology, equipment, price, cost quality Market, staff quality Administration Level, etc. Advantages are the strengths, advantages and characteristics of an enterprise, while disadvantages are its weaknesses, shortcomings or weak links. To implement the policy of "developing strengths and avoiding weaknesses" or "developing strengths and complementing weaknesses" in the development of enterprises, first of all, we must correctly understand our own strengths and weaknesses. How can we correctly understand our own strengths and weaknesses?
1. Have a strong sense of problems. The so-called problem is the gap between reality and ideal. When analyzing the advantages and disadvantages of enterprises, it is particularly important for those enterprises with good business performance to have a strong sense of problems. In the ever-changing business environment, the business performance of the enterprise can only represent the past, which will be severe and arduous for the enterprise in the future. Without a strong sense of problems, it is often "one handsome person covers one hundred ugly people", or blindly intoxicated with advantages without seeing their own disadvantages. At the same time, enterprises with poor efficiency should not only see their own disadvantages, but also see their own advantages without pessimism.
2. Evaluate from the perspective of long-term development Enterprise capability The current situation of. From a developmental and dynamic point of view, we should fully consider the changes in the business situation of the enterprise in a few years or even more. We should take a cautious attitude towards the analysis of the advantages of enterprises and an urgent attitude towards the analysis of the disadvantages of enterprises.
3. The external environment and internal conditions are mutually penetrating and influencing, so opportunities, threats, strengths and weaknesses must be comprehensively analyzed. In the analysis, the following questions are usually asked: Can you use your advantages to reduce your disadvantages; Can we take advantage of opportunities; Whether opportunities can be used to eliminate disadvantages; Can we take advantage of opportunities to strengthen our advantages; Whether the disadvantages will weaken the advantages; Whether disadvantages will hinder the use of opportunities; Whether the threat will increase the disadvantage; Whether the threat will weaken the advantage. Such repeated cross reference questions can stimulate analysts' thinking and help to combine various factors to form their own most favorable Competitive strategy
Change the environment, innovate and develop
External environment of the enterprise It is the constraint of business activities of enterprises, and it has a very important impact on the survival and development of enterprises. Modern management believes that. The key to success or failure of enterprise management lies in whether the enterprise can adapt to the changing external environment of the enterprise. Due to the continuous improvement of productivity and the progress of science and technology, the change rate of the external environment of contemporary enterprises is far more than Internal conditions of the enterprise The speed of change. Therefore, the survival and development of enterprises increasingly depend on their ability to adapt to changes in the external environment. Emphasizing the enterprise's response and adaptation to the environment does not mean that the enterprise is powerless or helpless to the environment. The enterprise cannot passively change itself to adapt to the environment, but should actively adapt to the business environment from a proactive perspective. In other words, enterprises can not only enhance their ability to adapt to the environment in various ways to avoid threats from the operating environment, but also find new opportunities in the changing environment and may change environmental factors under certain conditions. Or use your own Operating resources To influence and change the business environment, create a more favorable space for business activities, and then effectively adapt the business activities to the business environment.
Select advantages and build competitiveness
Through differentiation analysis, several potential competitive advantages are found. Scientific screening is carried out among these potential advantages. Some advantages are too small, or the development cost is too high, or company The image of is extremely inconsistent and can be discarded. An enterprise can differentiate itself from other competitors by concentrating a number of competitive advantages. Harvard Business School Professor Porter described competitive advantage as follows: competitive advantage comes from the value that a company can create for customers Value It is greater than the cost of the enterprise itself to create this value. What customers are willing to pay for is value. Selling at a price lower than that of competitors, but providing equivalent benefits, or providing unique benefits sufficient to offset higher prices, is called value-added. There are two basic types of competitive advantage: cost advantage and product differentiation. The enterprise's task is to check the cost and Operation And seek improvement measures. At the same time, it should also estimate the cost and operating conditions of competitors, and take this as the benchmark of the enterprise. As long as it can win over competitors, it will gain differentiated competitive advantages, thus building enterprise competitiveness.

Enterprise network

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overview
The enterprise network is connected with other Enterprise cooperation , reconfigure Enterprise value chain And the value system, seeking to be unique in the industry in terms of one or more characteristics that the buyer attaches importance to, and showing it in the form of unique products or services, thus creating a differentiated competitive advantage for enterprises. Enterprise network Low cost strategy It is to reconfigure the value chain to change the industry The differentiation strategy of the enterprise network is to reconfigure the value chain to customer Create unique buyer value, that is, what other enterprises in the industry cannot give Customer value
Better products or services
Enterprises can obtain differentiated competitive advantage by providing customers with better products or services than competitors. The correct way to complete this process is to pay attention to the enterprise value chain rather than just focus on Final product Or services. The differentiation strategy is completed through the value activities in the value chain and the impact of these activities on customers. Basically, the maintenance of differentiated competitive advantage depends on two aspects, one is the differentiated buyer's continuous value, and the other is that competitors do not imitate. But in fact, the buyer in the market demand The change of always exists, and the change is accelerated; The imitation of competitors is also inevitable. Therefore, enterprises must quickly and flexibly adapt to the changes in buyers' needs and establish imitation barriers.
By cooperating with other enterprises, the enterprise network strengthens a certain value activity in the value chain, making this value activity different from competitors in the industry, thus forming differences and Differentiated competition strategy
Faster products or services
Enterprises can obtain differentiated competitive advantage by providing customers with products or services that reflect customer needs faster than competitors. If the enterprise is regarded as a resource conversion system, the modern enterprise economic efficiency Not only from the quantity of resource conversion, that is, scale; More from the time of resource conversion, that is, speed. The key to the survival and development of enterprises is no longer organization Must be highly flexible and stable Rapid response Ability. Among them, market demand The change of production mode is the main factor leading to the change of enterprise organization production mode. stay consumer At the stage of personalized and diversified development of demand, enterprises have to change to the mode of multi variety and small quantity production, which can be obtained through the interrelated diversified expansion Economies of scope However, in the stage of accelerating consumer demand changes and market differentiation, enterprises must accelerate production and transaction processes Competitive environment To achieve speed economy.
By cooperating with other enterprises, the enterprise network accelerates the realization process of value activities in the value chain, improves the overall efficiency of the enterprise value system and differentiates itself from competitors in the industry, thus forming differentiated and differentiated competitive advantages with "faster products or services". enterprise Network organization Because it does not involve organization structure , but only complementary resources and core capabilities, so the change cost is low Organizational form Flexible and adaptable to the modern market technological innovation The fast changing external requirements caused by cycle shortening.

marketing management

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The so-called marketing differentiation means that the enterprise, relying on its own technological and management advantages, produces products that are superior to the existing level in the market in terms of performance and quality, or in terms of sales, establishes a different and good image in the eyes of consumers through distinctive publicity activities, flexible marketing means, and thoughtful after-sales services. Common differentiation strategies:
1. Positioning Differentiation strategy It mainly includes: brand positioning, industry role (competition orientation), etc.
2. Implement differentiation strategy. It mainly includes: consumer communication mode differentiation (demand orientation) and marketing implementation system, mechanism, staffing and other differentiation (competition orientation).
3. Demand differentiation strategy. It mainly includes: product differentiation in terms of function, quality and price (demand orientation) and differentiation in terms of middlemen's interests and channels (competition orientation).
4. Personality differentiation strategy. It mainly includes: product packaging, additional services, brand personality differentiation (demand orientation) and brand name, role, selling point differentiation (competition orientation).
In the field of marketing, only by realizing the differentiation advantage can the product sales of enterprises not be affected by the price war of competitors, can the brand marketing of products be realized, and can the product sales of enterprises be in an invincible position.