#6 Key Question: What are the success factors for achieving a differentiated competitive positioning?

Successfully differentiated companies are capable of anchoring above-average attractiveness of their products in the perception of potential buyers over a long-term period of time, achieved through the functional and emotional value attributes of their offerings. Despite a premium pricing in comparison to competitors customers perceive the value attributes of the offering as unique and superior, which results in decisive purchase preferences.

Entrepreneurial differentiation requires continuous forward-looking development of capabilities and success drivers to achieve and maintain sustainable competitive advantages based on superior attractiveness and value perception of its offering by potential  buyers. If successful, the company establishes a distinct and unique stand alone position in the market, built up on the pillars of perceived superior value  of its products and capabilities in the view of the customers, which in tendency strengthens customer loyalty and reduces the risk of interchangeability. As a result, a differentiated company can occupy and maintain a leading market position over a lifetime.

The sustained success of a differentiated market positioning primarily depends on the following 8 performance drivers:

  1. Long-term value-oriented entrepreneurial growth orientation
  2. Securing and expanding of competitive market position
  3. Systematic optimization of performance efficiency
  4. Evolutionary development of offering as well as brand strength and innovation power
  5. Participative implementation of technological progress
  6. Future-oriented assurance of necessary capabilities: people, business model
  7. Customer-focused market approach: customer engagement, emotional connection
  8. Execution excellence: flawless operational performance

By nurturing and advancing these performance drivers, a company can achieve and maintain a differentiated competitive positioning for sustainable success.

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