by C. J. Carpenter

Created on: July 12, 2008   Last Updated: February 19, 2010

Successful companies have found a way to differentiate themselves from their competitors. Market leaders such as, Microsoft, Mc Donald's, and Johnson and Johnson, all have developed strategic plans and implemented an approach to set themselves apart from other companies in their industry.

Differentiation from competition is accomplished by creating something that is or is perceived to be unique. It's crucial that a company knows its competitors mission and strategy. Salespeople can attain info in the field. Company info is available in their annual reports, on their website, and through investment firms. Gathering info on your competition is an on-going project. Here are some ways that you can differentiate your company from competition.

1. Product brand image and design firms that recognize changing trends and offer advancements for current products are likely to differentiate the company from their competition. An exclusive or exceptional design can draw customers and help a company dominant their environment. For years Mercedes Benz has created a perception that their automobile is unique and in a quality class of its own. In the pharmaceutical industry, companies that launch next generation therapies that benefit patients can also differentiate themselves from others in the industry.

2. Marketing- Without the right promotional slogan, graphics, and an exciting ad campaign, a company could have a dynamic product but no one knows about it. A creative marketing team can develop a graphic logo with pizzazz.
Having the right sales professionals on the team that are well trained, knowledgeable, and enthusiastic and have a good work ethic can help give the company an edge on its rivalry. Companies keep good sales people when they show them appreciation and give recognition for superior performance.

3. Technology- A Company must develop an excellent reputation for cutting edge research and development to lead in its industry. After introducing a less complex operating system, Microsoft, the software giant, continues to lead in its industry because they've been a relentless competitor and have diversified into PC games, entertainment devices, online services, and constantly improving the operating applications.

4. Customer service - Companies that hold their customers in high esteem and offer quality service understands that without the customers business they will fold. It's important to give great service consistently. The best gauge of excellent service is repeat business and customers will spread the word. Bend over backwards to make sure customers are satisfied.

By differentiating your company's product or service, you may reap above average profits and protect your business.

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