Michael Porter’s video discusses how to gain competitive advantage and profitability in the market place using specific strategies. Competitive advantage is the positioning of a company in its competitive environment. The starting point and key to have superior competitive advantage is to “improve faster than the competitors can catch up”, and this requires strategies.
One of the strategies is broad differentiation. Broad differentiation is having a unique benefit over the competition. In other words you need to market a product or service that customers think is important and identifying with the number of different needs that the customers have. American Airlines uses this strategy and it works very well for them. They know what their customers want and don’t want and that is essential. This airline knows that their passengers have somewhere to be and that some of them our on a very tight schedule, so they don’t have time to be delayed or even bumped to another flight. Their customers are important to them and like any business or company they are vital to their survival. American airline also differentiates themselves from their competitors through they’re advertising and award programs.
Another company that uses the broad differentiation strategy is U.S.
Cellular. They stress having services that are relevant to building relationships with their customers. They provide services for people with different and unique needs, rather it is used for personal uses, business uses, or for security. U.S. Cellular also offers accessories or their customers. They have easy access for their customers, which allows their customers to shop on the Internet or go to their local business in your area. They also market their products in shopping malls or the super center Wal-Mart. This wireless service communicates the value of their customers through advertising. Also through advertising they stress the quality of their services. This company/business also communicates the value of their customer service to their customers; they want to keep them happy with the service that they have chosen. Customers always have doubts about a purchase, and United States Cellular makes sure that they have no regrets or problems with their service.
Broad differentiators like United Sates Cellular and American Airlines have to be moving targets in today’s market. Competitors are sneaking up quickly and like Michael Porter said “you have to be one step ahead of your competitors”
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