Low-cost Differentiated Products

A product is differentiated if customers perceive it as having something valuable to them that other products do not have. A firm can differentiate its products by offering features that competitors’ do not have. A firm can also differentiate its products by being the first to introduce the products. Since such products are the only ones in the market, they are, by default, differentiated since no other product has their features.

Two products with identical features can still be differentiated by virtue of their locations. One differentiating factor may be the ease of access to the products.

A firm’s products may also be differentiated by the service the customer would get if such service were ever needed

The mix of products that a firm sells can also be a source of product differentiation. Customers who prefer one-stop shopping would find such product mixes valuable.

A firm’s reputation can go a long way toward making customers perceive its products as being different.

In order to deliver low-cost or differentiated products,  a firm must perform a series of activities. The different function s that perform each of these activities are called the firm’s value-chain.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please contact Asif J. Mir.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: