Sublime

In order to break through the noise, companies would need to take into account their own strengths and weaknesses, then contrast them with their competitors to create a unique leadership position in the minds of customers.

It may seem hard to believe that there are only two possible ways to win—low cost or differentiation.

a consistent image in the marketplace is a valuable asset, which can be rapidly compromised if the firm attempts to serve too diverse a set of client needs. Few firms, in my experience, have a clear picture of their true positioning along the expertise, experience, efficiency spectrum.

When we face a trade-off between our customers and a business goal, we align with the customer. When an objective seems out of line with our mantra, it gets extra scrutiny.

“sunk-cost bias.”

According to Professor Hall, the most successful commodity products differentiated themselves in one of two ways: either by low cost or by having the best reputation for quality or service.

In general, there are five ways that an individual firm can build sustainable competitive advantage: 1. Creating real product differentiation through superior technology or features 2. Creating perceived product differentiation through a trusted brand or reputation 3. Driving costs down and offering a similar product or service at a lower price 4.

Air Wars:

Blue ocean strategists simultaneously pursue differentiation and low cost. They aim to break, not make, the value-cost trade-off.