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Showing posts from February, 2011

Do Obscure Tools Make Better Products?

If all mechanics used the same set of tools, took the same approach and offered the same service they'd all cost the same and be highly competitive.  This is true for any homogeneous service or product offering.  Salt is salt no matter where you buy it from, so competition is based on price, as salt from one supplier is deemed to be substitutable with salt from another supplier.  The opposite approach to that, is making your product or service offering highly differentiated thus creating brand or product loyalty.  Here, competition can't be based on price as no other offering in the market place is a true replica of your own so substitution can't occur.  Non-price competition allows you to leverage an increased price and gain greater competitive advantage.


Not all products or offerings are suitable for differentiation, as a lot depends on the market place and the existing conditions.  However, one way to become differentiated is to alter what tools and processes you use to…