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Creating Differentiation in New Markets

Section 1

Read:

1. Kim and Mauborgne, “Creating New Market Space,” Harvard Business Review, January-February, 1999, 83-93.
2. Forsyth, Gupta, Haldar, and Marn, “Shedding the Commodity Mind-Set,” McKinsey Quarterly, 4, 2000, 78-85.
3. Lodish and Mela, “If Brands Are Built Over Years, Why Are They Managed Over Quarters”, Harvard Business Review, July-August 2007, 104-112

Questions:

1. How differentiation be created in a new market space?
2. What is the major message in the Forsyth et al article?
3. Can quality be a sustainable competitive advantage? Why or why not? (Consider different definitions of quality.)
4. What is the value of brand equity?

• What does Lodish and Mela’s article offer with respect to energizing the business?

Section 2

Read:

1. Suarez and Lanzolla, “The Half-Truth of First-Mover Advantage”, Harvard Business Review, April 2005, 121-127.
2. Halaburda and Oberholzer-Gee, “The Limits of Scale,” Harvard Business Review, April 2014, 95-99.

Questions:

1. When is there a first-mover advantage? When is there not?

• When is “wait and see” a viable marketing strategy?

Section 3

Read:

1. Adner and Snow, “Bold Retreat”, Harvard Business Review, March 2010, 76-81.
2. MacMillan, van Putten and McGrath, “Global Gamesmanship”, Harvard Business Review, May 2003, 62-71
3. Carr and Collis, “Should You Have a Global Strategy?” MIT Sloan Management Review, Fall 2011, 21-24
4. Frank Vermeulen, “Many strategies fail because they’re not really strategies,” Harvard Business Review, November 2017.
5. Amy Gallo, “A refresher on marketing ROI,” Harvard Business Review, July 2017.

Questions:

1. What are the strategic options for a firm facing game-changing technology?
2. When might a company wish to use a strategic alliance for international expansion?
3. What is the main message in the MacMillan, van Putten and McGrath article? How does it relate to the concepts discussed in Chapter 14?
4. When is a global strategy appropriate?
5. How are goals and strategies different?
6. Why do chief marketing officers and chief financial officers (CMOs and CFOs) seldom see eye to eye?

In their article “Creating New Market Space,” Kim and Mauborgne suggest that differentiation can be created in a new market space by identifying and pursuing a new value proposition that diverges from traditional industry boundaries. This requires companies to look beyond existing demand and to consider alternative customer groups, functions, and emotional appeal that can create new market space. The major message in Forsyth et al’s article “Shedding the Commodity Mind-Set” is that companies must shift their focus from competing on price to differentiating their products and services to remain competitive. The authors argue that companies can differentiate their offerings by improving the customer experience, creating unique value propositions, and leveraging customer data to tailor their offerings to specific customer segments.

Quality can be a sustainable competitive advantage, depending on the definition of quality and the industry in question. If quality is defined as meeting or exceeding customer expectations, then consistently delivering high-quality products or services can build customer loyalty and differentiate a company from its competitors. However, in industries where quality is commoditized or where product innovation is rapid, quality alone may not be sufficient to sustain a competitive advantage. Brand equity refers to the value that a brand adds to a product or service beyond its functional attributes. This value can be in the form of customer loyalty, perceived quality, and emotional attachment to the brand. The value of brand equity lies in its ability to differentiate a company’s offerings, command premium pricing, and increase customer retention and advocacy. It can also provide a barrier to entry for new competitors who may struggle to match the brand equity of established players in the market.