Differentiation

How does a company differentiate itself from other competing companies in the market? This question can be approached through various perspectives, such as that of the consumer, a competing company or even an objective observer. I will begin by looking at the automotive industry as a parent looking for their child's first car. As a parent, the first and probably only thing I am concerned about is the safety of my child. When I look at the vast ocean of automotive options, certain names pop into my head like, Kia, Volvo and Mercedes Benz. The next thing, which also leads into my additional perspective is the pricing on the vehicle. How much will this vehicle cost? Not only am I looking for safety but also affordability. As much as I care about my child, I don't want to the break the bank purchasing my child's first car. This is where competing car manufacturers come into play. Each car brand is looking to out perform the other not only through production efficiency but through revenue gains. Parent's are not concerned whether Kia is looking to generate more profits than Mercedes Benz this year, but car companies are looking for various shortcuts and new innovations to outdo the competition. So I go fishing around the car market and finally find a car that not only offers practicality, a bit of style and safety, but also affordability. My child hugs me and tells me that I am the greatest half male/female parent ever and I feel proud of myself. But am I truly proud of myself or did I just get jipped and pay way too much for a vehicle that is worth much less. This is where finally, the objective observer comes into play. Each company has it's own marketing scheme. May it be safety, national pride or technology, are the big companies brainwashing consumers into buying cars that are beyond our budget and practical use? More questions can arise such as is the company I am buying a product from support child labor or do they perform unethical business practices?

In the end, it comes down to the question of "what is in it for me"? Consumers want to find the best product, companies and their CEO's want the biggest profit margin, and objective observers support causes that enforce their agenda (agendas that support their personal beliefs). I believe that differentiation is a matter of capitalism, and that we cannot actually point a finger to how companies differentiate themselves. This is a topic that is constantly changing shapes quicker than an amoeba. For now, each company has its poignant marketing campaign, but in the future I believe that it will evolve to attract customers, gain more profit and ease third party observers.