Question

How should a company using the global differentiation strategy take steps to convince the board of directors?

Explain in detail.

Answer 1

Differential strategy refers to a long term type of philosophy and the way your business wishes to achieve the higher position in the market competiting with its competitiors by using and diversifying the most different techniques and communicating the different values in its products and services. To understand more for this concept, we'll take Netflix as an example to see how it implement and convince the board of directors to implement such a strategy:

1. One differentiation pattern: Netflix was the first online streaming platform which was launched all around the world to provide the customers with an amazing and affordable service to watch their favourite shows and videos anytime anywhere and in the best quality. Netflix doesn't start its business in other platform, but the prime focus was on the differential pattern it followed. Thus, the first point would be the benefits the company gets by following one differential pattern. By having this, Netflix only focuses on the people's needs and wants and how it can brilliantly provide the effective outcomes to such needs. It only focuses on customer quality and quality content being provided which is differentiated from different market aspects.

2. Focus on efforts: Next approach in the differential strategy talks about focusing on the efforts. By seeing that many new competitiors were also arising in the same market arena like Amazon Prime, Netflix has to do something to make it's differential strategy still alive. And the approach it used was applauded by the customers all around. It brought out its own original content which was only available on it. Many shows on Netflix are exclusively available on it only and no other platform which is again an example of how effectively a company can achieve huge success by differentiating itself from the market and providing services and products of exclusive quality to make the customers also feel exclusive.

3. Continuing Approach: At last, the continuing approach. Even in this time of covid-19, Netflix is one of the top company ever because of the increased volume of sale and customer database. And to increase more of this and have a good result both economically and socially, Netflix reduced its prices to make people understand and stay at home and also earn profits. This tells us about the third benefit of differentiation with is the goodwill and the economic profit that would be effectively created when you'll serve the customers in the right way which is also a different and a unique approach as compared to other market competitors.