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Trace the connections between differentiation strategy, core capabilities and positioning strategy. How are they relevant to new product planning?




Product is one of the most important tools to help the company stay alive and stay competitive such as increasing profit, reputation earning a profit, and so on. A good product could have a huge different effect from a common product. Product is also one of the elements the differentiate a successful company and normal company.

产品是帮助公司保持活力和保持竞争力的最重要工具之一,例如增加利润、赢得利润的声誉等等。一个好的产品可能与普通产品产生巨大的不同效果。产品也是区分成功公司和正常公司的要素之一。



Thus, the uniqueness of the product that differentiates the company will be much important and this is why many companies have their own differentiation strategy based on their product. To implement the differentiation strategy, the company will need to find out and enhance its product core capabilities. Core capabilities are referring to the advantages that other companies could not achieve or hard to achieve. This was the most important element that a company needs to have if wants to succeed. The core capabilities could be the best process, unique knowledge, special technology use in product innovation, or a good relationship, high innovation and creativity, perfect cooperation, and so on. For example, high accurate forecast ability and efficient front-line execution ability. 

因此,区分公司的产品的独特性将非常重要,这就是为什么许多公司根据其产品制定自己的差异化战略。实施差异化战略,企业需要挖掘和提升产品核心能力。核心能力是指其他公司无法实现或难以实现的优势。这是一家公司要想成功所需要具备的最重要的元素。核心能力可以是最好的工艺、独特的知识、产品创新中的特殊技术应用,也可以是良好的关系、高度的创新和创造力、完美的合作等。比如高精准的预测能力和高效的一线执行能力。



However, the core capabilities usually impossible to do in one stroke but it was requiring a long-time accumulation of experience, knowledge, and so on. For example, the core capabilities of Sony company were the abilities to miniaturize which you can found that most of Sony product was smaller and convenient than usual, just like the MP3 player was a small version of radio.

然而,核心能力通常不可能一蹴而就,而是需要长期积累经验、知识等。例如,索尼公司的核心能力是微型化的能力,你会发现索尼的大部分产品都比平时更小更方便,就像MP3播放器是一个小版本的收音机一样。



All of this core capabilities that differentiate the company and product with other competitor has actually positioned the company and product in the market too. All of those differentiation strategies and core capabilities have reflected on the product design and planning, such as trademark, packaging, composition, performance, image, shaping, price, and others. For example, in the automobile industry, the brand of Rolls-Royce from uniting kingdom has the high price positioning, Rolls-Royce vehicle has become the symbol of rich people and life, synonymous with luxury. This has caused Rolls-Royce has become the car model preferred by the upper classes of people because it has satisfied those customers ‘physical enjoyment and feeling of superiority.

所有这些将公司和产品与其他竞争对手区分开来的核心能力实际上也将公司和产品定位在市场上。所有这些差异化战略和核心能力都体现在产品设计和规划上,如商标、包装、成分、性能、形象、造型、价格等。例如,在汽车行业,来自英国的劳斯莱斯品牌具有高价定位,劳斯莱斯汽车已经成为富人与生活的象征,奢华的代名词。这使得劳斯莱斯成为了上流社会喜爱的车型,因为它满足了上层顾客的身体享受和优越感。



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