Product Differentiation
Categories: Company Management
You know Apple product when you see it. Smooth. Formed. Edgy. It actually...works. What a concept.
Product differentiation is more or less the same as company differentiation. You know a Ford from a Tesla. Yes, one obvious diff...but the manner in which everything happens, the audience to whom the cars appeal, the way in which everything is packaged? All vastly different.
So what's the opposite? Total commodities. Like if you're buying coal. Or copper. Or gold. Or water. All the same, no matter where they're bought or whom you buy them from. And if you have a total commodity, you have virtually no pricing power. The "winner" of the sale will simply be the lowest cost provider.
You generally don't wanna be in a business like this, where all you compete on is price. Tough way to make a living. Ask any lumberjack.
