Ventaja competitiva michael porter capítulo 4

Chapter 4. Differenciation

The differenciation is when the firm provides something unique that is valuable to buyers beyond offering just a low price. The objective ofdifferenciation is achieved when the cost of the diifferenciation does not excess the extra price the firms adds because of the differenciation.
Often, firms do not see how importantdifferenciation is, they usually try to make the differenciation happened in the product or service itself in stead of in the process.
Differenciation could be in the raw materials, in theproduction process, or in easiest factors, such as making easy the maintenance, very places to get the product, etc.
When a firm gets the differenciation, it could offer its product at ahigher price knowing the buyers will still buy it, or leave it at the same price its competition and also knowing the buyers will still prefers its product.
When the firms decides tooffer its prodcut at a higher price it has to make sure the buyer will certainly see a value in the uniqueness and exactly knows how the product works.
For differenciation to be a longterm competitive advantage, the firm has to take in consideration 2 things, the continued percieved value to buyers and the lack of imitations from competitors.
I believe this is avery important concept the firm has to take in consideration, and even more now in our days with all the globalization and the ability to other markets, not only the one in our stateor country. A firm has to be able to offers a different and better product that its competidor even tough it is offering a product that can be used in equal ways.
The book offersseveral ways, and even the stops to accomplish differenciation, but I relieve it depends a loto f the product the firm es offering, and even more in the type of market share the firm wants.