Instead of relying on any one differentiator or market entry option, a company must create its own unique combination of best features and performance characteristics. It is not enough to do just a little bit better than the competition. Harvard University professor Michael Porters claims that a company doesn’t really have a strategy if it’s doing the same as its competitors, only a little better. Such a company is simply more efficient, and good work is not the right strategy.
Better performance may help a company
Win for a while, but sooner or later competitors will catch up and overtake such a company. Michael Porters believes that a strong business is chinese in america one whose operating strategy is distinctly different from its competitors. That’s why Dell Computer develop a strategy of selling computers over the phone instead of through retailers. She develop excellent direct and database marketing and was able to convince clients that her services and prices were the best.
The next step of this company
The sale of computers on the Internet – meant it expressly prohibits the use a further breakthrough. Now the daily turnover of online sales of Dell computers exces three million dollars. Other companies have also develop unique strategies. IKEA has develop a completely new strategy for the production and sale of furniture, which is fundamentally different from the usual one.
The Saturn division of General Motors sells cars
In a completely different way than usual. Rent-A-Car has found a whole new niche in the market and start to rent old cars at a lower price by bulk lead combining its activities with insurance companies. Michael_Porter, Marketing ManagementBut have these successful new strategies not been follow up and eventually become mainstream? Of course, imitators are hot on their heels. IKEA and Southwest airlines could make sure of that . However, it is one thing to copy some aspects of a new strategy and quite another to imitate the entire strategy.