product differentiation case study

So, what makes LUSH so different from the likes of Sephora or even Etsy? Handmade products. Advocates of LUSH are committed to ethical buying, and are obsessed with the purity that comes from a handmade item. The company's biggest success is knowing that its core buyers value social and corporate responsibility over a luxurious and out-of-reach image.

LUSH's branding is simple and genuine, with great contrast between visuals that is simply not seen elsewhere. For that reason, the company has a massive brand-loyal following.

How they ' re doing it:

• Understands its customers — appeals to the girl who's "had enough" and believes in what they believe
• Selfless with its products — offers free samples and in-store trials on nearly everything
• Not selling an image—the business is selling a viewpoint on how to define "beauty"
• Offers a one-of-a-kind retail experience like you're walking into an Etsy store in real life

2. Airstream

Top competition: jayco, winnebago, fleetwood.

Airstream is a cult classic — the company was founded in 1929 (if great marketing is a mix of inbound and tradition, there's your tradition ). As one of the most recognized RVs on the road, its sleek, silver cabin is an iconic image of cross-country road trips.

So what makes Airstream any different than Winnebago or Jayco? Like LUSH, it focuses on the intangible desires of its core customer. Airstream owners embrace the "retro"side of life, something other RV brands just don't offer. What you get with an Airstream is exactly what you want to tout on the open road: a classic exterior with a modern interior. It's a great blend of the past meets the future.

Airstream is simply a "silent" luxury. It doesn't scream "I'm rich," but definitely makes you feel like it from the inside. The company even partners with luxury brands like Mercedes Bens to maintain the sense of independence that "streamers" (the affectionate nickname of Airstream drivers) crave.

• Focus on quality, image and community — expensive, but rarely lose value, and built to last
• Recently relaunched a new website and digital experience
• Offers endless community and dealership events where you can sit in an Airstream to experience it yourself
• Customer stories focused on Airstream experiences, with the tagline "Live Riveted"

3. Oscar Health Insurance

Top competition: new york life, metlife.

Oscar Health Insurance prides itself on being insurance made friendly. For the layperson, healthcare is a fairly daunting subject. With that in mind, this brand sought to make medical coverage — a tradition for its core customer — personable and easy to understand.

But that's not the only way Oscar Health Insurance uses simplicity to differentiate itself in the healthcare marketplace.

In prioritizing an inbound approach to its insurance offerings, Oscar Health Insurance designed a user experience (UX) into its website that allows customers to browse and learn about what they're paying for, buy their desired plan, and customize it with a doctor who is in their insurance network — all from the Oscar Health website. This build-your-own-plan concept makes the company truly shine in its market.

• Uses bright visuals, large short copy, and a parallax scrolling site to make digesting information easy on desktop, mobile and tablet
• Focuses on a small, niche network just in New York
• The company is transparent in partnering with doctors, allowing you to customize your quote immediately
• Making customer-benefit promises like "Talk with our doctors for free, one will call you within the hour"

4. Whole Foods

Top competition: trader joe's, earthfare, fresh market.

Whole Foods goes beyond groceries -- the company is one of content generators and thought leaders. You don't often find them from a consumer packaged goods (CPGs) manufacturer.

So, what does content marketing and thought leadership do for Whole Foods customers? Better yet, what does it give people that they can't get from Fresh Market or even Trader Joe's?

Whole Foods mixes   traditional   CPG marketing with the content, storytelling, and digital experience of   inbound   marketing by showing shoppers   why   they buy the food they buy: a healthy, diverse, and "wholesome" selection. The company goes beyond the get-in-and-get-out experience of so many grocery stores today while still being a top-tier, large, national chain.

How they're doing it:

• Shares ideas, generating meaningful content that isn't boastful or sales-driven. The business understands what its customer is looking for
• Promotes a "greener" lifestyle -- got rid of plastic bags in 2008
• Focuses on local stores, taking away that feeling of the big chain
• Bright, unique and cheerful store design that's as easy to navigate as its website
• Partners with shows like Top Chef to promote their food
• Hosts events, runs   multiple blogs   and has an app -- showing the future of grocery shopping

Top Competition: Adecco, Kelly Services, Manpower

It's one thing to sell a service, but it's another thing to sell a message behind that service. Yoh embodies this difference in its recruitment product, which helps match tech companies with the right talent.

Yoh looks absolutely nothing like any other recruiting site (or company, for that matter). The company gives its customers — both recruiters and candidates, depending on the service they seek — the courage to steer away from generic, stuffy pictures and copy. This is critical when advertising yourself to a business or potential hire.

Yoh even makes learning about the company fun and engaging, showing that the company practices what it preaches. You could say the brand has a pulse .

• Uses bold messaging that speaks to "you" and not about "we"
• Little to no industry jargon
• Consistent and striking brand look and feel
• Unique and contextual images that go beyond what they're trying to define
• Original website design that is hyper visual
• Downloadable content and clear CTAs that drive interaction

As you can see, big brands with big budgets aren't the gatekeepers of differentiation. In fact, it's easier to stand out if you're a smaller business that is personable, agile and not afraid to make mistakes. Your biggest market disrupters — the Airbnbs and Ubers of your industry — only got to where they are today by proving they were different from the rest.

So, to get noticed, you need to figure out what makes your business stand out. Then use that "special sauce" to elevate your brand. Our eight steps and these five examples are here to inspire your own brand differentiation strategy.

A final thought: We said earlier that brand differentiation is how you get the lion's share of buyer attention. But there's no denying that being different feels like a risk. Change invites criticism. It's an untested path. Nevertheless, you must be brave as you go on this journey, because it is a necessary one. In other words, be the lion. Be fearless.

Originally published Jan 23, 2023 7:00:00 AM, updated January 30 2023

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Product Differentiation is the Secret Ingredient (Pepsi vs. Coca-Cola) In this article, I will be telling you about product differentiation using the example of Pepsi and Coca-Cola.

I am fighting out a case for Product Differentiation . I can’t stress over the fact about how it matters the most when you look at marketing from any perspective, the consumer’s or the company’s.

When creating a new product your aim, generally, is to not be yet another similar product on the market like your competitors’ products.

No one plans to spend an entire marketing budget in creating something exactly like something already out there.

In fact, your aim as a marketer is to create a product that is unique! Your aim is to create a purple cow, as the ace marketer Seth Godin calls it in his fantastic book on marketing that I was reading the other day.

But often times your product does end up being just another forgettable substitute for a product already out there in the market, doesn’t it?

In the last article I discussed Positioning, the need for it and how does it really work to create a product that is unique.

Check out the article here: What is Positioning in Marketing (The Viagra example) .

I also talked about how Cialis came about and did a fantastic job of creating a great product backed up by a unique positioning.

While on one end we have Cialis, we also have loads and loads of companies that fail to make a mark despite having some remarkable products and even more remarkable brands.

You want to ensure that your company provides customers with the best offerings in the market. The current competitive business environment requires that you ensure that your organization’s offerings are unique from that of your competitor.

Smart companies like Honda rely on differentiation by investing huge amounts of resources to develop new products that go through the product life cycle.

When I talk about product differentiation, I would like you to think of the product not just as the tangible product that we are hardwired to think about.  Think of the product as a service or as a person, as an event or maybe an experience.

In this article, I will be telling you about product differentiation using the example of Pepsi and Coca-Cola.

When you look at Hindustan Unilever it offers different toilet soaps for different target markets each with a unique brand identity. Proctor & Gamble also offers a variety of washing detergents to its customers with different brands.

Both Unilever and Proctor & Gamble have differentiated their physical products and their potential in the market.

The motorcycle industry is one that has a high level of product differentiation. Honda, TVS, and Bajaj Auto all offer motorcycles but their products are differentiated in terms of the price, aesthetic value, and quality.

This is the kind of differentiation that I want you to think about in your organization’s offerings.

Importance of Product Differentiation in Marketing

I have talked about the types of differentiation that you should consider in your offerings. You have to understand that the current business environment is competitive and every business has offerings that serve the needs of its customers.

In this regard, you have to ensure that you provide your customers with a reason to constantly seek your offerings.

In the subsequent sections of this article, I will discuss each of the following benefits of differentiating your offerings:

deliver outstanding customer value, maximize on profits, enhance brand loyalty, and adapt to the contemporary business environment.

First, you must appreciate the fact that current customers are quite knowledgeable and are out to maximize the value from the offerings that they purchase.

They are aware that there are substitutes that are cheaper or of higher quality than what you provide. When you differentiate your offerings, you will be unique among the available substitutes as you guarantee customers of the value they obtain in your offerings.

Second, Customer value and brand loyalty are two facts that go hand-in-hand. When you assure customers of the value they obtain from your offerings, then you tend to encourage brand loyalty.

Your customers will become loyal to your brand and they could make recommendations to their networks.

Isn’t this what you look out for in every sale that you make?

In effect, your customers will constantly refer to the brand as the offering they receive and will ignore other substitutes.

Third, you should be aware that the current business environment is characterized by vast knowledge, value, efficiency, and innovation.

When you seek to differentiate your offerings, you should always think about innovation. You should continuously provide your customers with new features or ideas. It will make you adjust fast to the dynamic business environment.

The last and most important benefit that you look for in product differentiation is to maximize your profits. When you serve the needs and wants of your customers, they would be willing to pay a premium for your products because they lack a reason to seek substitute offerings.

When you want to differentiate your offerings, you should make sure you address the following questions:

• How do I want my products to perform compared to those of my competitors?
• What quality to customers need in my offerings?
• How durable are my products?
• Is the design of my product different from those of my competitors?

When you answer these questions appropriately, I should expect you to have differentiated offerings in the market.

Product Differentiation at Pepsi & Coca-Cola

The intense competition between Coca-Cola and Pepsi, who are the largest producers of carbonated drinks in India, will make a good example to understand how they differentiate their offerings in India.

For them, product differentiation is definitely the secret ingredient .

Pepsi has undergone significant change since it was introduced to the American market in 1898 and in India in 1989. In 2016, Pepsi had a 26.7% control of the Indian market share; a slight decline from 2015 where it owned 27.6% of this market (Statista, 2018) .

Pepsi has always targeted a young audience with most of its advertisements addressing teens who have a keen interest in sports, fun, and music. With these eye-catching and interesting adverts, you would like to give Pepsi a taste just to experience the value the drink offers. The advertising slogan of Pepsi in India is “Youngistaan ka Wow”

Pepsi is a sugary carbonated drink that has a citrus flavor burst. It has a lot of calories, sugar, and caffeine. The Pepsi drinks are available in different varieties like Mountain Dew, Aquafina, Frito Lay, and AMP energy drinks. Pepsi’s brands, Pepsi, Pepsi MAX, Pepsi NEXT, and Diet Pepsi, are all packaged in a plastic bottle to reflect its youthful spirit.

Pepsi’s major competitor in refreshments is Coca-Cola. Coke has experienced a decline in its Indian market share between 2014 and 2016, from 35.5% in 2014 to 33.5% in 2016 (Banerji & Shashidhar, 2017). This decline has largely been contributed by a growing number of local beverage companies.

When you taste Coca-Cola, you cannot immediately tell how it is different to Pepsi. It has an almost similar content composition thus people have a behavioral preference for one of the drinks over the other.

How then does Coca-Cola differentiate itself from the Pepsi drinks?

The differentiation is in the story that they tell you.

I owe this piece of my knowledge to Seth Godin, the man himself. I have read most of his book but this one – All Marketer’s are liars – really brings together all the basic tenets of marketing.

And the most basic of them is that you differentiate yourself in the positioning , which is also the story that you tell to your customers with an integrated marketing effort.

That book is a must read whenever you find the time.

When you check most of Coca-Cola’s adverts, the company is keen on emphasizing on family , friendship, adorable bears, and other happy relationships. The current slogan of Coca-Cola is “Share a Coke, Open Happiness”.

When you taste a Coke, you get to have a raisin-vanilla taste that has a lot of sodium nutritional content. Through its different brands like Lemon Coke, Diet Coca-Cola, Cherry, and Vanilla Coke, the company has been able to differentiate its offerings to the different customer segments.

When you find any Coke product, you will first notice the different packaging used for its different brands. Coca-Cola differentiates its drinks from those of Pepsi through its packaging. I associate the classic Coke with the red color. When I find any Diet Coke, it is always black.

In addition to the packaging, Coca-Cola ensures that consumers can get these different brands in different quantities. The glass bottle is available in 0.25, 0.5, and 1 liter; the plastic bottles are available in 0.5, 1, 1.5, and 2 liters; and the cans can be bought in either 0.25 or 0.33 liters. It ensures that the packaging materials are recyclable and environment-friendly. In this way, Coca-Cola has differentiated its drinks from that of Pepsi to ensure it serves the needs of its consumers.

When you look at Coke and Pepsi, it is clear that these companies are different not only in their products but also their advertisements and packaging. They are different in, what Seth Godin says in his book , their storytelling.

In their products, you can notice that the taste of Pepsi’s products are quite sugary whereas those of Coca-Cola have a raisin-vanilla taste. Another difference between Pepsi and Coke is the message delivered to their customers in all their adverts. Coca-Cola emphasizes relationships while Pepsi focuses on entertainment like sports and music.

Even in their packaging, Pepsi and Coke make sure their customers have a variety of products that they can select.

Coke packs its products in cans and plastic and glass bottles in different quantities as mentioned above whereas Pepsi packs its drinks mostly in cans and plastic bottles in limited quantities. This article on differentiating your offerings will assist you to guide your organization on how it can differentiate its products.

If you feel this article was beneficial, you can share it through the links on the left. I rest my case.

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Product Differentiation Case Study Solution & Analysis

• Harvard Case Studies

Harvard Business Case Studies Solutions – Assignment Help

In most courses studied at Harvard Business schools, students are provided with a case study. Major HBR cases concerns on a whole industry, a whole organization or some part of organization; profitable or non-profitable organizations. Student’s role is to analyze the case and diagnose the situation, identify the problem and then give appropriate recommendations and steps to be taken.

To make a detailed case analysis, student should follow these steps:

STEP 1: Reading Up Harvard Case Study Method Guide:

Case study method guide is provided to students which determine the aspects of problem needed to be considered while analyzing a case study. It is very important to have a thorough reading and understanding of guidelines provided. However, poor guide reading will lead to misunderstanding of case and failure of analyses. It is recommended to read guidelines before and after reading the case to understand what is asked and how the questions are to be answered. Therefore, in-depth understanding f case guidelines is very important.

Harvard Case Study Solutions

porter’s five forces model

STEP 2: Reading The Product Differentiation Harvard Case Study:

To have a complete understanding of the case, one should focus on case reading. It is said that case should be read two times. Initially, fast reading without taking notes and underlines should be done. Initial reading is to get a rough idea of what information is provided for the analyses. Then, a very careful reading should be done at second time reading of the case. This time, highlighting the important point and mark the necessary information provided in the case. In addition, the quantitative data in case, and its relations with other quantitative or qualitative variables should be given more importance. Also, manipulating different data and combining with other information available will give a new insight. However, all of the information provided is not reliable and relevant.

When having a fast reading, following points should be noted:

• Nature of organization
• Nature if industry in which organization operates.
• External environment that is effecting organization
• Problems being faced by management
• Identification of communication strategies.
• Any relevant strategy that can be added.
• Control and out-of-control situations.

When reading the case for second time, following points should be considered:

• Decisions needed to be made and the responsible Person to make decision.
• Objectives of the organization and key players in this case.
• The compatibility of objectives. if not, their reconciliations and necessary redefinition.
• Sources and constraints of organization from meeting its objectives.

After reading the case and guidelines thoroughly, reader should go forward and start the analyses of the case.

STEP 3: Doing The Case Analysis Of Product Differentiation:

To make an appropriate case analyses, firstly, reader should mark the important problems that are happening in the organization. There may be multiple problems that can be faced by any organization. Secondly, after identifying problems in the company, identify the most concerned and important problem that needed to be focused.

Firstly, the introduction is written. After having a clear idea of what is defined in the case, we deliver it to the reader. It is better to start the introduction from any historical or social context. The challenging diagnosis for Product Differentiation and the management of information is needed to be provided. However, introduction should not be longer than 6-7 lines in a paragraph. As the most important objective is to convey the most important message for to the reader.

After introduction, problem statement is defined. In the problem statement, the company’s most important problem and constraints to solve these problems should be define clearly. However, the problem should be concisely define in no more than a paragraph. After defining the problems and constraints, analysis of the case study is begin.

STEP 4: SWOT Analysis of the Product Differentiation HBR Case Solution:

• Pest analysis

SWOT analysis helps the business to identify its strengths and weaknesses, as well as understanding of opportunity that can be availed and the threat that the company is facing. SWOT for Product Differentiation is a powerful tool of analysis as it provide a thought to uncover and exploit the opportunities that can be used to increase and enhance company’s operations. In addition, it also identifies the weaknesses of the organization that will help to be eliminated and manage the threats that would catch the attention of the management.

This strategy helps the company to make any strategy that would differentiate the company from competitors, so that the organization can compete successfully in the industry. The strengths and weaknesses are obtained from internal organization. Whereas, the opportunities and threats are generally related from external environment of organization. Moreover, it is also called Internal-External Analysis.

In the strengths, management should identify the following points exists in the organization:

• Advantages of the organization
• Activities of the company better than competitors.
• Unique resources and low cost resources company have.
• Activities and resources market sees as the company’s strength.
• Unique selling proposition of the company.

WEAKNESSES:

• Improvement that could be done.
• Activities that can be avoided for Product Differentiation.
• Activities that can be determined as your weakness in the market.
• Factors that can reduce the sales.
• Competitor’s activities that can be seen as your weakness.

OPPORTUNITIES:

• Good opportunities that can be spotted.
• Interesting trends of industry.
• Change in technology and market strategies
• Government policy changes that is related to the company’s field
• Changes in social patterns and lifestyles.
• Local events.

Following points can be identified as a threat to company:

• Company’s facing obstacles.
• Activities of competitors.
• Product and services quality standards
• Threat from changing technologies
• Financial/cash flow problems
• Weakness that threaten the business.

Following points should be considered when applying SWOT to the analysis:

• Precise and verifiable phrases should be sued.
• Prioritize the points under each head, so that management can identify which step has to be taken first.
• Apply the analyses at proposed level. Clear yourself first that on what basis you have to apply SWOT matrix.
• Make sure that points identified should carry itself with strategy formulation process.
• Use particular terms (like USP, Core Competencies Analyses etc.) to get a comprehensive picture of analyses.

STEP 5: PESTEL/ PEST Analysis of Product Differentiation Case Solution:

Pest analyses is a widely used tool to analyze the Political, Economic, Socio-cultural, Technological, Environmental and legal situations which can provide great and new opportunities to the company as well as these factors can also threat the company, to be dangerous in future.

Pest analysis is very important and informative.  It is used for the purpose of identifying business opportunities and advance threat warning. Moreover, it also helps to the extent to which change is useful for the company and also guide the direction for the change. In addition, it also helps to avoid activities and actions that will be harmful for the company in future, including projects and strategies.

To analyze the business objective and its opportunities and threats, following steps should be followed:

• Brainstorm and assumption the changes that should be made to organization. Answer the necessary questions that are related to specific needs of organization
• Analyze the opportunities that would be happen due to the change.
• Analyze the threats and issues that would be caused due to change.
• Perform cost benefit analyses and take the appropriate action.

PEST FACTORS:

• Next political elections and changes that will happen in the country due to these elections
• Strong and powerful political person, his point of view on business policies and their effect on the organization.
• Strength of property rights and law rules. And its ratio with corruption and organized crimes. Changes in these situation and its effects.
• Change in Legislation and taxation effects on the company
• Trend of regulations and deregulations. Effects of change in business regulations
• Timescale of legislative change.
• Other political factors likely to change for Product Differentiation.

ECONOMICAL:

• Position and current economy trend i.e. growing, stagnant or declining.
• Exchange rates fluctuations and its relation with company.
• Change in Level of customer’s disposable income and its effect.
• Fluctuation in unemployment rate and its effect on hiring of skilled employees
• Access to credit and loans. And its effects on company
• Effect of globalization on economic environment
• Considerations on other economic factors

SOCIO-CULTURAL:

• Change in population growth rate and age factors, and its impacts on organization.
• Effect on organization due to Change in attitudes and generational shifts.
• Standards of health, education and social mobility levels. Its changes and effects on company.
• Employment patterns, job market trend and attitude towards work according to different age groups.

case study solutions

• Social attitudes and social trends, change in socio culture an dits effects.
• Religious believers and life styles and its effects on organization
• Other socio culture factors and its impacts.

TECHNOLOGICAL:

• Any new technology that company is using
• Any new technology in market that could affect the work, organization or industry
• Access of competitors to the new technologies and its impact on their product development/better services.
• Research areas of government and education institutes in which the company can make any efforts
• Changes in infra-structure and its effects on work flow
• Existing technology that can facilitate the company
• Other technological factors and their impacts on company and industry

These headings and analyses would help the company to consider these factors and make a “big picture” of company’s characteristics. This will help the manager to take the decision and drawing conclusion about the forces that would create a big impact on company and its resources.

STEP 6: Porter’s Five Forces/ Strategic Analysis Of The Product Differentiation Case Study:

To analyze the structure of a company and its corporate strategy, Porter’s five forces model is used. In this model, five forces have been identified which play an important part in shaping the market and industry. These forces are used to measure competition intensity and profitability of an industry and market.

porter’s five forces model

These forces refers to micro environment and the company ability to serve its customers and make a profit. These five forces includes three forces from horizontal competition and two forces from vertical competition. The five forces are discussed below:

• THREAT OF NEW ENTRANTS:
• as the industry have high profits, many new entrants will try to enter into the market. However, the new entrants will eventually cause decrease in overall industry profits. Therefore, it is necessary to block the new entrants in the industry. following factors is describing the level of threat to new entrants:
• Barriers to entry that includes copy rights and patents.
• High capital requirement
• Government restricted policies
• Switching cost
• Access to suppliers and distributions
• Customer loyalty to established brands.
• THREAT OF SUBSTITUTES:
• this describes the threat to company. If the goods and services are not up to the standard, consumers can use substitutes and alternatives that do not need any extra effort and do not make a major difference. For example, using Aquafina in substitution of tap water, Pepsi in alternative of Coca Cola. The potential factors that made customer shift to substitutes are as follows:
• Price performance of substitute
• Switching costs of buyer
• Products substitute available in the market
• Reduction of quality
• Close substitution are available
• DEGREE OF INDUSTRY RIVALRY:
• the lesser money and resources are required to enter into any industry, the higher there will be new competitors and be an effective competitor. It will also weaken the company’s position. Following are the potential factors that will influence the company’s competition:
• Competitive advantage
• Continuous innovation
• Sustainable position in competitive advantage
• Level of advertising
• Competitive strategy
• BARGAINING POWER OF BUYERS:
• it deals with the ability of customers to take down the prices. It mainly consists the importance of a customer and the level of cost if a customer will switch from one product to another. The buyer power is high if there are too many alternatives available. And the buyer power is low if there are lesser options of alternatives and switching. Following factors will influence the buying power of customers:
• Bargaining leverage
• Switching cost of a buyer
• Buyer price sensitivity
• Competitive advantage of company’s product
• BARGAINING POWER OF SUPPLIERS:
• this refers to the supplier’s ability of increasing and decreasing prices. If there are few alternatives o supplier available, this will threat the company and it would have to purchase its raw material in supplier’s terms. However, if there are many suppliers alternative, suppliers have low bargaining power and company do not have to face high switching cost. The potential factors that effects bargaining power of suppliers are the following:
• Input differentiation
• Impact of cost on differentiation
• Strength of distribution centers
• Input substitute’s availability.

STEP 7: VRIO Analysis of Product Differentiation:

Vrio analysis for Product Differentiation case study identified the four main attributes which helps the organization to gain a competitive advantages. The author of this theory suggests that firm must be valuable, rare, imperfectly imitable and perfectly non sustainable. Therefore there must be some resources and capabilities in an organization that can facilitate the competitive advantage to company. The four components of VRIO analysis are described below: VALUABLE: the company must have some resources or strategies that can exploit opportunities and defend the company from major threats. If the company holds some value then answer is yes. Resources are also valuable if they provide customer satisfaction and increase customer value. This value may create by increasing differentiation in existing product or decrease its price. Is these conditions are not met, company may lead to competitive disadvantage. Therefore, it is necessary to continually review the Product Differentiation company’s activities and resources values. RARE: the resources of the Product Differentiation company that are not used by any other company are known as rare. Rare and valuable resources grant much competitive advantages to the firm. However, when more than one few companies uses the same resources and provide competitive parity are also known as rare resources. Even, the competitive parity is not desired position, but the company should not lose its valuable resources, even they are common. COSTLY TO IMITATE: the resources are costly to imitate, if other organizations cannot imitate it. However, imitation is done in two ways. One is duplicating that is direct imitation and the other one is substituting that is indirect imitation. Any firm who has valuable and rare resources, and these resources are costly to imitate, have achieved their competitive advantage. However, resources should also be perfectly non sustainable. The reasons that resource imitation is costly are historical conditions, casual ambiguity and social complexity. ORGANIZED TO CAPTURE VALUE: resources, itself, cannot provide advantages to organization until it is organized and exploit to do so. A firm (like Product Differentiation)  must organize its management systems, processes, policies and strategies to fully utilize the resource’s potential to be valuable, rare and costly to imitate.

STEP 8: Generating Alternatives For Product Differentiation Case Solution:

After completing the analyses of the company, its opportunities and threats, it is important to generate a solution of the problem and the alternatives a company can apply in order to solve its problems. To generate the alternative of problem, following things must to be kept in mind:

• Realistic solution should be identified that can be operated in the company, with all its constraints and opportunities.
• as the problem and its solution cannot occur at the same time, it should be described as mutually exclusive
• it is not possible for a company to not to take any action, therefore, the alternative of doing nothing is not viable.
• Student should provide more than one decent solution. Providing two undesirable alternatives to make the other one attractive is not acceptable.

Once the alternatives have been generated, student should evaluate the options and select the appropriate and viable solution for the company.

STEP 9: Selection Of Alternatives For Product Differentiation Case Solution:

It is very important to select the alternatives and then evaluate the best one as the company have limited choices and constraints. Therefore to select the best alternative, there are many factors that is needed to be kept in mind. The criteria’s on which business decisions are to be selected areas under:

• Improve profitability
• Increase sales, market shares, return on investments
• Customer satisfaction
• Brand image
• Corporate mission, vision and strategy
• Resources and capabilities

Alternatives should be measures that which alternative will perform better than other one and the valid reasons. In addition, alternatives should be related to the problem statements and issues described in the case study.