Differentiated products and services
A second generic strategy is to offer products (we’ll use the word products here to represent both products and professional services) that stand out from those offered by other companies. If these standout products are truly valued by customers, the firm won’t have to resort to low prices to sell them.
There are many examples of this across all industries. Products such as BMW automobiles, Calvin Klein jeans, and Apple products are all sold to consumers who value some intrinsic quality or perceived benefit in the product. And they are willing to pay a premium price to obtain them.
In some cases, the prices that customers will pay are almost breathtaking. Some golf clubs, for example, have an initiation fee ...
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