engleski

Differentiation of differentiation

Increased global competitiveness, reduced product life cycles, rapid technological advancements, and dynamic customer requirements have drastically altered the nature of competition. Henderson (1989) argues that two firms cannot coexist if they make their livings in identical ways and that’s the reason why firm distinguish from its rivals. Researchers and entrepreneurs have different ways how to achieve competitive advantages. This article examines one of the possible sources of competitiveness: differentiation strategy. Differentiation implies a unique and valuable offer for which customers are ready to pay more. But, differentiation is not simply about offering different product features ; it is about identifying and understanding every possible interaction between the differentiation subject and its target groups. The results of literature review show the systematization of differentiation factors in several categories depending on the differentiation subject such as product, firm and country. For product differentiation we analyze resource, capabilities, innovations, brand management, technology, quality and time and we find key differentiation factors in this category are: innovations, brand, technology and quality. So, a product to differentiate successfully must be: creative, recognizable, functional and quality improved. For firm differentiation we study culture and assets, tradition, strategy, public relation and time. We find the most influential factors of firm differentiation are: assets, strategy, public relations and time. So, to have a great differentiation level a firm must be: profitable, adaptive, inimitable and interactive. From a country perspective we study factor condition, demand condition, supporting industries, firms' strategy and structure and government. Key factors we highlights are: factor conditions, demand, related industries, firm strategy and structure. To differentiate successfully a country must be: sustainable, growing, organized and interconnected. Although it is important to distinguish between the different aspects of differentiation this paper contributes to the strategic management literature in analyzing the common aspects of differentiation regardless of the aspect and level. Our conclusion is that the most important differentiation sources of competitiveness are based on innovations, resources, quality, brand and strategy. Differentiation encourages learning, research, development and reflection in order to achieve higher level of competitiveness. The competitive edge is achieved by the superior capability in general aspects, meeting customer needs and differentiate from competitors. Differentiation has a general roots but should be directed towards differentiation of differentiation.

differentiation ; strategy ; competitive advantage

Znanstveni rad s međunarodnom recenzijom, indeksiran u bazama: EconLit, ProQuest, EBSCO