Differentiated Growth

What is Differentiated Growth?

A differentiated growth strategy is a business approach that promotes unique, distinct, and different product offerings as compared to competitors. The primary goal of enforcing differentiated growth is to boost the competitive advantage of the company. In other words, differentiated growth gives your customers a valid reason to prioritize your business over your competition.

To successfully implement a differentiated growth model, a business needs to analyze the following factors:

1. Business strengths: resources or expertise of the company that can be used to accomplish its objectives.
2. Customer requirements: the features and functionalities expected by the customers.
3. Value added by the product: the overall value provided by the product to the end user.

Types of Differentiated Growth

There are two types of differentiated growth strategies that can be implemented by a company:

1. Broad Differentiated Growth: This type of growth strategy involves creating a brand or enterprise that differs from all its competitors. The Broad Differentiated Growth strategy is applied to the entire industry domain and attracts a lot of clients.
2. Focus Differentiated Growth: This type of growth strategy dictates that companies offer distinct features and functionalities with a product. It also requires the business to fulfil the needs of a niche market.

Types of Differentiated Growth Strategies

Other than the two types of differentiated growth strategies mentioned above, there are 6 types of specific differentiated growth strategies. They are:

1. Product Differentiation: This is the most common type of differentiation strategy. In this strategy, the companies try to implement unique product designs and features. Here are a few ways how consumers differentiate a product:

i) Product Features: the attributes and traits of the product that offer value to the customers

ii) Product efficiency: the ability of the product to offer value without wastage of other resources.

iii) Product performance: the level of fulfilment of the desired action by the product.

iv) Consumer feedback: the review and comments added by the customers who have used your product or service.

2. Service Differentiation: In this type of differentiation strategy, the company ought to come up with distinct services for its clients. Some of the factors that you can look into to differentiate your service offering are:

i) Order processing time: time taken by the company to accept the order and prepare it for dispatchment.

ii) Customer service method: types of communication method available to contact the customer care (email, phone, SMS, etc)

Delivery time: time taken by the logistics team to deliver the product to the end u