Be Significantly Different, Not Just Slightly Better

Instead of pursuing incremental improvements, the goal of a winning strategy is to be significantly different in one or more ways that are important to a specific group of customers. If you are different in a meaningful way, you will be perceived as significantly better by that target segment.

This requires the courage to choose a radically different path rather than following the market leader.

The Power of Differentiation:

• Creates a Niche: True differentiation is the foundation of market segmentation. It allows you to serve the needs of a specific customer group better than anyone else.
• Builds Defensible Barriers: A unique strategy or product is much harder for competitors to copy than a simple feature improvement. It creates strong Segment Barriers Protect Profitable Niches.
• Avoids Head-On Competition: It allows you to avoid a direct, resource-intensive war of attrition against entrenched leaders.

Being "slightly better" is a trap that leads to commodity thinking and price wars. Being different is a strategic choice that builds a sustainable business. This is especially true when constraints prevent a head-on assault.