Different isn't always better...
...but better is always different.
- Pontiac Aztek (2001-2005), total production: 115,322
- PT Cruiser (2000 - ?), total production: 1.2 million and counting
Differentiation is an important part of, and usually a result of good innovation. Sometimes, just making a point of differentiating the brand based on a single, identifiable factor can make a big difference.
Commodities. An often-used word these days, particularly in the automotive industry. Similar to Henry Ford's saying, "If you think you can do a thing, or if you think you can't do a thing, you're right." if you think your product or service is, or is not a commodity, you're right. Some say their product or service isn't a commodity. A good test is whether or not it has to go up against the competition on price. If it does, it is. If it doesn't, it isn't. Purchasing people love commodities. Marketing people and innovators don't. Differentiation can be created. Differentiation by innovation is even better. Personally, I don't believe in commodities - and that everything can be differentiated. Some would argue.
- In the automotive supplier world, Brembo has done an excellent of differentiating themselves as the high-performance leader in brakes - resulting in their being the brake system leader in higher-performance cars, with many OEMs featuring and marketing the Brembo name on their cars, including on the red calipers with the Brembo logo.
Here's an example of a product & service that used to be considered a commodity: a cup of coffee. That was before Starbuck's got into the act.
Commodities do not have to be.
Differentiation adds value.
Starbucks seems to have done pretty well with all that - growing from one store in Seattle in 1971 to 13,782 worldwide in 2007 (so far). Their sales and earnings reflect that growth.
So, you can differentiate what may have been thought to be a commodity. In the Starbuck's case, they certainly did that - and changed the whole coffee drinking culture in America.
- One criteria for a good innovation (whether product, service or process) is that it is differentiable enough to set itself, you and your business apart from the crowd.
WWW.INNOVATIONZEALOT.COM
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