Differentiation Strategy

Topics: Management, Payment, Supply chain Pages: 3 (807 words) Published: September 1, 2011
Differentiation is a process by which a company distinguishes itself from its competitors and their offerings. The process includes adding a set of differentiators which are meaningful and adds value for the customer. The differences should be perceived by the customer as important, distinctive, superior and affordable. Nonetheless, they have to make the company’s offerings i.e the products and services profitable. To derive competitive advantage the study of the processes to adapt innovations which should be of such nature as being preemptive is important. Here, we are not considering the situation of an entirely new product but those which are already contributing to the company revenues and the threat of competitors has to be met. According to Miland Lele (Miland M.Lele, Creating Strategic Leverage: New York, John Wiley 1992) companies have different potential in terms of maneuverability along with target market, place(channels), promotion and price. These are affected by the company’s position in the market, the industry structure. BCG has classified ( Philip Kotler) four types of industries and the approaches available, depending on the cell the particular industry fits into.

Tools for implementation of Operations
All functions in the organisation including administration, finance, materials, purchase, marketing, production, logistics, communication and others, can be considered operations. The reason is all of them use some inputs like materials or information either on a person to person basis or through a flow line. They are required to use some process and convert them into outputs usable in the next stage of the value chain. For example, when an invoice is received for payment, it contains information about a material or a service, the person who needed it, the price to be paid, the supplier, transportation, insurance, quantity, tax to be paid, etc. The bills payable section will have to verify data regarding the above, seek inspection reports from...
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