This pot can only be recited by the Chinese translation of Michael Porter's book Competitive Strategy.
As we know, Michael Porter combed three competitive strategies in Competitive Strategy: overall cost leadership; Differentiation); Strategy; Centralized strategy (emphasis).
Among them, the total cost leading strategy is easy to understand and not easy to confuse. However, China people's interpretation of differentiation strategy and centralization strategy is simply confusing, which leads many people to think that differentiation strategy and centralization strategy are the same in many aspects, and they can't tell the difference.
Let's take a look at the Chinese interpretation of these two strategies in Think Tank Encyclopedia:
Differentiation strategy, also known as unique strategy, refers to the strategy adopted to gain competitive advantage and distinguish the products, services and corporate image of an enterprise from its competitors.
Specialization strategy is to focus on a special customer base, a subdivided product line or a regional market.
Many people are confused about the term "part of the product line" in the specialization strategy. What's the difference between TM and differentiation strategy?
For example, they all make energy drinks. Red Bull is the industry leader, so I can't compete head-on. I am cheaper, or add the concept of replenishing vitality, which can release energy and replenish vitality. I do different market segments, the former is a price-sensitive market segment and the latter is a health-oriented market segment. Isn't this a differentiation strategy? Why should I talk about a concept similar to specialization strategy? It's not necessary.
Ten years ago, I was trapped in this confusion. Not only I, but also the whole project team and even the company didn't really understand the difference between these two strategies (differentiation and centralization). Almost all projects, without exception, draw the conclusion that differentiated competitive strategy must be adopted in the early competitive strategy analysis. This is not nonsense. Is it possible for you to adopt a total cost leadership strategy? Those are topics that multinational companies are qualified to talk about, and the whole competitive strategy analysis becomes meaningless.
But at that time, customers were also ignorant. Anyway, you are a well-known brand organization in China, so you can say whatever you want, as long as the final delivery result feels ok.
Later, I went out with several colleagues and worked independently. In the early stage, we still have to solve the problem of competitive strategic direction. I'm not satisfied with the operation of the previous projects according to the previous model. I spent a lot of time thinking, and finally, I suddenly realized.
Now that the truth is clear, let's practice it!
In 20 14, a small company came to us. The boss was a serious person and wanted to know what to do with his own brand. This is not the first time that we have cooperated (professional managers have cooperated before). We have given enough time and patience to complete the one-stop service of competitive strategy, brand strategy and brand design in one breath. The customer was very satisfied and left with the plan (it was later learned that the customer's revenue in two or three years was close to one billion, which was enough).
2065438+May, 2005 1 day, another case was received, in which I closed my eyes and buried myself in writing at home, and combined the competitive strategy with the brand strategy to create the slogan that this century-old enterprise used for nearly five years, and the income of single products doubled.
After that, we have provided brand creativity and planning for many enterprises on the basis of competitive strategy, and all of them have achieved good results. I don't need to say more.
We believe that the biggest difference between specialization strategy and total cost leading strategy and differentiation strategy lies in:
Specialization strategy is aimed at the market, while total cost leading strategy and differentiation strategy are more often aimed at products or services.
For example, Coca-Cola is a famous model of total cost leadership strategy. Ten years ago, a can of Coca-Cola was three yuan. Ten years later, a can of Coca-Cola is still three yuan. With its absolute leading cost advantage in manufacturing and channels, Coca-Cola has killed many cokes one by one. Even though it was very imposing in those years, it has been silent for years.
Please note that when we talk about total cost leadership strategy, we usually refer to products or services.
The same is true of differentiation strategy. When we say that Apple's mobile phone adopts a differentiation strategy, we often refer to how its mobile phone or service is different.
Specialization strategy is just the opposite. His first consideration is the market, that is, people.
My favorite case of specialization strategy is Dunhill, whose brand positioning is luxury men's wear and leather accessories. His product line is very wide. As long as those noble and fashionable men need it, they are willing to provide saddles, clothing, accessories, leather goods, lighters and a series of products.
The biggest difference between specialization strategy and differentiation strategy is that the target market of specialization strategy is very concentrated (so the original English word is focus) and the product line is relatively wide, while the target market of differentiation strategy may be scattered and the product line is relatively narrow. Take Apple as an example, people from all walks of life can use Apple, but Apple's product line focuses on digital products.
In the past few years, Apple has considered the transition to a professional strategy. Why do you think so? Unknown. Maybe he was carried away by his performance, or maybe the chef was bent on getting out of Jobs' shadow in product innovation. In short, this transformation has almost become the waterloo of the cook. Product pricing rose instantly, and the middle class could hardly afford Apple phones. The market audience has shrunk dramatically, and the breadth of the product line is not enough to ensure the growth of revenue. A tragedy is about to unfold. Fortunately, Cook calmed down at a critical moment, got rid of luxury cross-border executives and returned to the broad road of differentiation strategy. Iphone 1 1 extended the 5000 yuan gear to save the day. After all, it was a false alarm.
Finally, using a table to express the relationship between these three strategies is also the trajectory or trend of the development of enterprise competitive strategy, and it can also be said that it is the fate of successful enterprises.