Dear Industry: Dare to Differentiate

Why should I (or anyone) buy your product or service over another? This is one of the most important questions any company in business should be asking. Right now it seems in the consumer and personal electronics industry too many executives answer that question with “price”. Their thinking is “My product costs less therefore it is the more desirable option.”

The only problem with that answer is that it is fundamentally flawed, particularly when a product or service competes in a market that is mature or post-mature. In mature product markets there is significantly more happening during the purchasing process.

The reason price is what most companies in the personal technology industry is because price was what drove the explosive growth over the past 10-15 years. However now that the market for PC’s is mature and smart phones and tablets will mature very quickly. Strategically thinking through product differentiation will be central to the innovation and product planning process.

Understanding Mature Markets
In a mature market differentiation is everything. This is true for the simple reason that in a mature market most consumers know what they want in a product and shop accordingly. As a product or category goes through the maturation cycle consumers first purchase helps to familiarize them with the product for the first time. This is happening now with smart phones and tablets.

Consumers are experiencing their first or second smart phone and their first tablet. This will continue to be case for the next few years as these categories mature. After owning one or two product generations consumers begin to become more familiar with their desires for a product.

However the PC market is fundamentally different. Most consumers have owned at least one if not several desktops and or notebooks. Because of this they now know for the most part what they want and what they don’t want with a personal computer and they are shopping accordingly.

It is with this consumer mentality that differentiation is crucial.

This idea first hit me five years ago when I was doing some specific analysis around differentiation. I walked into Best Buy to try to get the consumer experience for shopping for a notebook.

What I saw was a line of notebooks spread across the computer aisle all looking roughly the same. They all ran the same OS with no clear value proposition in favor of one over another except for price.

So as I watched consumers come in and shop for notebooks what was the first thing they went up and looked at? The price tag. Price is important but it should not be the only value proposition of a consumer product.

In a mature product market consumers move to shopping from price to preference.

PC’s Are Now Like Cars
I use this analogy quite a bit but the automotive industry I feel is the best example of a post mature product market to study.

There are more examples of technology and automotive industry similarities than I have time to get into but we can look at a few.

When consumers shop for cars they already know what they want based on their needs or preferences. Do they prefer a truck, do they prefer a minivan, do they prefer an economy car, do they want to save gas, or do they want to drive in luxury. These are all pre-defined buying characteristics that consumers are self-aware of.

The automotive industry has segmented and each segment has its own unique needs, wants and desires.

Similarly with regards to the technology industry consumers are shopping for PCs and other devices based on preference. For some price is their preference, like an economy car, however that is not the only differentiation opportunity.

Hardware Differentiation is Not Enough
All of that context on mature markets and the automotive industry to say that hardware differentiation is simply not enough.

Apple differentiates itself in three vectors all working together. These vectors are hardware, software and services. Apple services differentiate their software which differentiates their hardware. Because Apple is vertically integrated and own’s every level of their differentiation they stand apart from the pack.

It is for this reason that some level of vertical-ization is necessary in order to compete going forward. It is also for this reason enabling technologies or middleware companies need to figure out how to help their hardware partners differentiate their products.

This is never more glaringly true of a problem than with Windows and with Android. Android and Windows are middle ware software providers that solve the software problem for hardware manufactures but add the problem of differentiation.

Devices running the same software can only be different through hardware. This is why in my scenario above when I was looking for notebook differentiation I saw all the notebooks at Best Buy running Windows. None of them were really any different because of it.

Differentiation is no easy task in todays landscape. None the less the answer is innovation. Right now I see companies innovating looking through the rear view mirror rather than innovating with a forward-looking philosophy.

Dare to differentiate, dare to innovate and look to the future not to the past.

Read the First in the Dear Industry Series:
Dear Industry: The Series Introduction

Published by

Ben Bajarin

Ben Bajarin is a Principal Analyst and the head of primary research at Creative Strategies, Inc - An industry analysis, market intelligence and research firm located in Silicon Valley. His primary focus is consumer technology and market trend research and he is responsible for studying over 30 countries. Full Bio

941 thoughts on “Dear Industry: Dare to Differentiate”

  1. I really enjoyed reading your post. I am an MBA student myself am writing my final thesis exactly on the same topic (differentiation in a no hardware differentiation era). Got some good ideas from your post. Cheers
    Miles

  2. I think the only place left to differentiate is in the user interface.
    The software(OS) and hardware designers need to get out of the way.
    Let the customer and the third party software designers come up with a customizable U/I.
    Provide them with a neutral base which will morph to whatever configuration the customer want, and let them be able to export that template if they want to.
    To a certain extant that IS currently possible, but almost no-body knows that, or what to do to achieve it.
    Make it as simple as click and drag.
    If I want the “close/minimise/expand” icons on the left or right, or the bottom, then let me do it. Click and drag…
    If I want the scroll bar to reverse direction on the mouse scroll wheel, then why can’t I right click the scroll bar to open that as a menu option.
    Why cant I put all of my options on a memory stick and take that to another computer, and have that one interface exactly like my one?
    If I don’t want to sync through iTunes why the hell should I have to…
    And for that matter, iTunes is butt ugly, why can’t customize what I see when I visit there, alter the layout and options to a manner that suits me.

  3. I do agree with all the ideas you’ve presented in your post. They are really convincing and will definitely work. Still, the posts are too short for novices. Could you please extend them a little from next time? Thanks for the post.

  4. An interesting dialogue is worth comment. I think that you must write extra on this topic, it might not be a taboo subject however typically persons are not sufficient to talk on such topics. To the next. Cheers

  5. I have been surfing on-line more than three hours today, but I never discovered any fascinating article like yours. It’s lovely value enough for me. In my view, if all site owners and bloggers made good content as you probably did, the net might be a lot more helpful than ever before. “Truth is not determined by majority vote.” by Doug Gwyn.

  6. Thanks for sharing excellent informations. Your web site is very cool. I’m impressed by the details that you have on this blog. It reveals how nicely you perceive this subject. Bookmarked this web page, will come back for extra articles. You, my friend, ROCK! I found just the info I already searched everywhere and simply couldn’t come across. What a great website.

  7. Does your blog have a contact page? I’m having problems locating it but, I’d like to send you an e-mail. I’ve got some recommendations for your blog you might be interested in hearing. Either way, great website and I look forward to seeing it improve over time.

  8. Hello there, just became aware of your blog through Google, and found that it is truly informative. I’m gonna watch out for brussels. I will appreciate if you continue this in future. A lot of people will be benefited from your writing. Cheers!

  9. Hey! I know this is kinda off topic however , I’d figured I’d ask. Would you be interested in trading links or maybe guest authoring a blog post or vice-versa? My blog addresses a lot of the same topics as yours and I feel we could greatly benefit from each other. If you happen to be interested feel free to shoot me an e-mail. I look forward to hearing from you! Fantastic blog by the way!

  10. I don’t even understand how I ended up here, but I believed this post used to be great. I do not realize who you are but certainly you’re going to a well-known blogger if you happen to are not already 😉 Cheers!

  11. I have been absent for a while, but now I remember why I used to love this blog. Thank you, I will try and check back more often. How frequently you update your web site?

  12. Admiring the time and effort you put into your website and detailed information you provide. It’s good to come across a blog every once in a while that isn’t the same unwanted rehashed information. Excellent read! I’ve saved your site and I’m adding your RSS feeds to my Google account.

  13. Hello, Neat post. There is an issue along with your web site in internet explorer, may test this?K IE still is the market chief and a good component of folks will omit your wonderful writing because of this problem.

  14. Excellent read, I just passed this onto a colleague who was doing a little research on that. And he actually bought me lunch as I found it for him smile So let me rephrase that: Thanks for lunch! “The future is not something we enter. The future is something we create.” by Leonard I. Sweet.

  15. Hiya, I am really glad I’ve found this information. Today bloggers publish only about gossips and web and this is really irritating. A good blog with exciting content, this is what I need. Thank you for keeping this web-site, I’ll be visiting it. Do you do newsletters? Cant find it.

  16. Excellent read, I just passed this onto a friend who was doing a little research on that. And he just bought me lunch since I found it for him smile So let me rephrase that: Thanks for lunch! “No one can wear a mask for very long.” by Seneca.

  17. Hello, i believe that i noticed you visited my site so i got here to “return the choose”.I’m attempting to in finding things to improve my website!I suppose its good enough to use some of your ideas!!

  18. Simply want to say your article is as astounding. The clearness in your put up is simply spectacular and that i could assume you’re a professional in this subject. Fine together with your permission allow me to grab your feed to stay up to date with imminent post. Thank you one million and please keep up the rewarding work.

  19. Great – I should definitely pronounce, impressed with your website. I had no trouble navigating through all tabs as well as related information ended up being truly simple to do to access. I recently found what I hoped for before you know it at all. Reasonably unusual. Is likely to appreciate it for those who add forums or something, site theme . a tones way for your customer to communicate. Nice task..

  20. Thank you, I’ve recently been looking for info approximately this topic for a while and yours is the best I’ve discovered till now. But, what about the bottom line? Are you certain in regards to the source?

  21. Thanks , I’ve just been looking for information about this subject for ages and yours is the best I have discovered so far. But, what about the conclusion? Are you sure about the source?

  22. Hi, Neat post. There is a problem together with your web site in web explorer, might check this?K IE nonetheless is the marketplace leader and a good component of folks will omit your magnificent writing due to this problem.

  23. Thank you a lot for giving everyone remarkably pleasant chance to read articles and blog posts from this website. It really is so good and also packed with a good time for me and my office acquaintances to search your website at minimum thrice per week to read through the newest issues you have. And indeed, I’m just always fascinated for the tremendous principles you give. Selected 1 ideas in this posting are undeniably the most efficient we have all had.

  24. Heya i am for the first time here. I came across this board and I find It really useful & it helped me out much. I hope to give something back and aid others like you aided me.

  25. Does your site have a contact page? I’m having problems locating it but, I’d like to send you an e-mail. I’ve got some ideas for your blog you might be interested in hearing. Either way, great blog and I look forward to seeing it grow over time.

  26. Nice read, I just passed this onto a colleague who was doing some research on that. And he just bought me lunch because I found it for him smile So let me rephrase that: Thanks for lunch! “How beautiful maleness is, if it finds its right expression.” by D. H. Lawrence.

  27. Good day! This is kind of off topic but I need some help from an established blog. Is it hard to set up your own blog? I’m not very techincal but I can figure things out pretty fast. I’m thinking about setting up my own but I’m not sure where to begin. Do you have any points or suggestions? Many thanks

  28. Hi there, just became aware of your blog through Google, and found that it’s truly informative. I’m gonna watch out for brussels. I’ll appreciate if you continue this in future. A lot of people will be benefited from your writing. Cheers!

  29. Hiya, I am really glad I have found this info. Nowadays bloggers publish just about gossips and internet and this is actually annoying. A good blog with interesting content, that’s what I need. Thank you for keeping this site, I will be visiting it. Do you do newsletters? Can’t find it.

  30. Игра на официальном сайте казино Azino777. Простая регистрация, быстрые транзакции, бездепозитные бонусы. Начинайте на Азино777 играть на реальные деньги прямо сейчас

  31. Great – I should certainly pronounce, impressed with your web site. I had no trouble navigating through all tabs as well as related information ended up being truly easy to do to access. I recently found what I hoped for before you know it in the least. Reasonably unusual. Is likely to appreciate it for those who add forums or something, site theme . a tones way for your customer to communicate. Excellent task.

  32. Great – I should certainly pronounce, impressed with your website. I had no trouble navigating through all the tabs as well as related info ended up being truly simple to do to access. I recently found what I hoped for before you know it at all. Quite unusual. Is likely to appreciate it for those who add forums or anything, website theme . a tones way for your customer to communicate. Nice task.

  33. I’ve read some excellent stuff here. Definitely price bookmarking for revisiting. I wonder how a lot effort you put to make this kind of excellent informative website.

  34. You actually make it seem really easy with your presentation however I find this matter to be really one thing that I feel I would by no means understand. It sort of feels too complex and very huge for me. I am taking a look ahead for your next publish, I will attempt to get the dangle of it!

  35. It’s really a nice and useful piece of information. I’m glad that you shared this helpful information with us. Please keep us informed like this. Thank you for sharing.

  36. An impressive share, I just given this onto a colleague who was doing a bit evaluation on this. And he in truth purchased me breakfast because I found it for him.. smile. So let me reword that: Thnx for the treat! However yeah Thnkx for spending the time to debate this, I really feel strongly about it and love studying more on this topic. If attainable, as you develop into experience, would you thoughts updating your blog with extra particulars? It is highly useful for me. Huge thumb up for this weblog post!

  37. Hiya, I am really glad I have found this information. Today bloggers publish just about gossips and net and this is actually frustrating. A good blog with interesting content, that is what I need. Thanks for keeping this web-site, I will be visiting it. Do you do newsletters? Can’t find it.

  38. The very heart of your writing whilst sounding reasonable initially, did not really settle very well with me after some time. Somewhere throughout the sentences you actually managed to make me a believer but only for a short while. I however have got a problem with your leaps in logic and one might do well to fill in those breaks. In the event that you actually can accomplish that, I will undoubtedly be fascinated.

  39. Thank you for the auspicious writeup. It in fact was a amusement account it. Look advanced to more added agreeable from you! By the way, how could we communicate?

  40. Just wish to say your article is as astounding. The clearness in your publish is simply excellent and i could assume you’re knowledgeable on this subject. Fine along with your permission let me to clutch your RSS feed to keep updated with imminent post. Thanks one million and please keep up the enjoyable work.

  41. Having read this I thought it was very informative. I appreciate you taking the time and effort to put this article together. I once again find myself spending way to much time both reading and commenting. But so what, it was still worth it!

  42. I gave gummies for sleep cbd a prove payment the maiden time, and I’m amazed! They tasted distinguished and provided a be under the impression that of calmness and relaxation. My lay stress melted away, and I slept outstrip too. These gummies are a game-changer for me, and I enthusiastically commend them to anyone seeking spontaneous worry alleviation and improved sleep.

  43. Hey! This is my first comment here so I just wanted to give a quick shout out and tell you I truly enjoy reading your articles. Can you recommend any other blogs/websites/forums that go over the same topics? Thanks for your time!

  44. What i don’t understood is in truth how you are no longer actually much more smartly-preferred than you may be now. You are very intelligent. You know thus significantly with regards to this subject, made me individually imagine it from a lot of varied angles. Its like men and women are not involved unless it’s one thing to accomplish with Girl gaga! Your own stuffs nice. At all times handle it up!

  45. I like what you guys are up also. Such intelligent work and reporting! Keep up the excellent works guys I have incorporated you guys to my blogroll. I think it will improve the value of my site 🙂

  46. I haven?¦t checked in here for a while since I thought it was getting boring, but the last few posts are good quality so I guess I?¦ll add you back to my everyday bloglist. You deserve it my friend 🙂

  47. Thank you for sharing excellent informations. Your web-site is very cool. I’m impressed by the details that you’ve on this web site. It reveals how nicely you perceive this subject. Bookmarked this website page, will come back for more articles. You, my friend, ROCK! I found simply the info I already searched everywhere and simply could not come across. What a perfect website.

  48. Some really superb articles on this site, thanks for contribution. “When he has ceased to hear the many, he may discern the One – the inner sound which kills the outer.” by H Hahn Blavatsky.

  49. The very root of your writing while sounding reasonable in the beginning, did not really settle very well with me personally after some time. Someplace within the paragraphs you actually managed to make me a believer unfortunately just for a while. I nevertheless have got a problem with your leaps in assumptions and one might do well to fill in all those gaps. In the event that you can accomplish that, I could definitely be fascinated.

  50. GETOF.NET is a free online video downloader site that allows you to record, convert and download almost any audio or video URL to popular formats. Currently supported services: YouTube, Facebook, Vimeo, Reddit, Pinterest Video and many more. Just give it a try! This free and fast converter allows you to watch your favorite YouTube videos offline on your PC, TV or almost any other device.

  51. Do you mind if I quote a few of your articles as long as I provide credit and sources back to your website? My blog is in the very same area of interest as yours and my visitors would definitely benefit from a lot of the information you present here. Please let me know if this ok with you. Thanks!

  52. I do like the manner in which you have framed this specific challenge and it really does supply me personally some fodder for thought. Nonetheless, through what precisely I have personally seen, I only hope as the actual remarks pack on that individuals keep on point and not embark on a soap box of some other news of the day. Anyway, thank you for this fantastic point and even though I can not necessarily go along with this in totality, I value the viewpoint.

  53. We’re a bunch of volunteers and opening a brand new scheme in our community. Your web site offered us with helpful information to paintings on. You have done an impressive process and our entire group will likely be thankful to you.

  54. Hey very cool website!! Man .. Beautiful .. Amazing .. I will bookmark your site and take the feeds also…I am happy to find so many useful info here in the post, we need develop more techniques in this regard, thanks for sharing. . . . . .

  55. You really make it seem really easy with your presentation however I in finding this matter to be actually one thing which I think I’d by no means understand. It sort of feels too complicated and extremely extensive for me. I am taking a look forward on your next publish, I¦ll try to get the dangle of it!

  56. I love your blog.. very nice colors & theme. Did you create this website yourself? Plz reply back as I’m looking to create my own blog and would like to know wheere u got this from. thanks

  57. My partner and I absolutely love your blog and find nearly all of your post’s to be just what I’m looking for. Does one offer guest writers to write content for you? I wouldn’t mind writing a post or elaborating on most of the subjects you write regarding here. Again, awesome web site!

  58. Hi there, simply became alert to your weblog thru Google, and located that it’s really informative. I am gonna watch out for brussels. I will be grateful if you continue this in future. A lot of other people will be benefited out of your writing. Cheers!

  59. We are a bunch of volunteers and starting a brand new scheme in our community. Your website provided us with helpful information to paintings on. You have performed an impressive process and our entire group will likely be thankful to you.

  60. Hello, i believe that i noticed you visited my site so i came to “go back the desire”.I am attempting to in finding things to improve my website!I guess its adequate to make use of some of your concepts!!

  61. Hiya, I am really glad I have found this information. Nowadays bloggers publish just about gossips and web and this is actually irritating. A good site with exciting content, this is what I need. Thanks for keeping this website, I will be visiting it. Do you do newsletters? Can not find it.

  62. Whats Happening i am new to this, I stumbled upon this I have found It absolutely useful and it has helped me out loads. I’m hoping to give a contribution & aid different customers like its helped me. Good job.

  63. hey there and thanks on your information – I’ve definitely picked up anything new from proper here. I did however expertise several technical issues the usage of this web site, since I skilled to reload the site lots of occasions prior to I may just get it to load properly. I had been thinking about in case your web host is OK? No longer that I’m complaining, but slow loading instances times will very frequently have an effect on your placement in google and can injury your quality score if ads and ***********|advertising|advertising|advertising and *********** with Adwords. Well I’m adding this RSS to my e-mail and can glance out for a lot more of your respective intriguing content. Ensure that you replace this again soon..

  64. I recommend checking the latest online sources or news articles for the most recent information.

  65. Thanks for every one of your work on this web site. Betty really loves going through investigation and it’s really easy to see why. Most people learn all relating to the lively means you create simple suggestions via this blog and in addition encourage contribution from the others on that concept then our girl is truly discovering a great deal. Enjoy the remaining portion of the year. You are always conducting a wonderful job.

  66. I do agree with all the ideas you’ve presented in your post. They’re really convincing and will definitely work. Still, the posts are too short for beginners. Could you please extend them a bit from next time? Thanks for the post.

  67. I’ve been surfing on-line more than three hours these days, yet I never discovered any interesting article like yours. It is pretty value enough for me. Personally, if all website owners and bloggers made just right content as you did, the net shall be much more helpful than ever before.

  68. Hello, you used to write excellent, but the last few posts have been kinda boringK I miss your super writings. Past few posts are just a little out of track! come on!

  69. My spouse and i got peaceful that Louis could round up his investigations out of the ideas he grabbed through your weblog. It is now and again perplexing just to continually be releasing thoughts which often others may have been selling. And we also take into account we have you to be grateful to for this. The illustrations you made, the simple web site menu, the relationships you will help to promote – it’s mostly wonderful, and it is helping our son in addition to the family do think that matter is excellent, which is certainly very serious. Thank you for the whole thing!

  70. Hello, Neat post. There is an issue along with your site in web explorer, would check thisK IE nonetheless is the market leader and a large part of other folks will omit your fantastic writing because of this problem.

  71. You really make it seem really easy along with your presentation however I in finding this topic to be really something that I believe I might never understand. It seems too complex and extremely broad for me. I’m looking forward to your next submit, I?¦ll try to get the cling of it!

  72. Hey, you used to write wonderful, but the last few posts have been kinda boringK I miss your tremendous writings. Past few posts are just a little out of track! come on!

  73. Admiring the time and effort you put into your blog and in depth information you provide. It’s good to come across a blog every once in a while that isn’t the same unwanted rehashed information. Great read! I’ve bookmarked your site and I’m including your RSS feeds to my Google account.

  74. Oh my goodness! an amazing article dude. Thank you Nonetheless I’m experiencing difficulty with ur rss . Don’t know why Unable to subscribe to it. Is there anybody getting equivalent rss problem? Anyone who is aware of kindly respond. Thnkx

  75. Incredible! This blog looks exactly like my old one! It’s on a entirely different topic but it has pretty much the same page layout and design. Great choice of colors!

  76. Whats up very nice web site!! Guy .. Beautiful .. Superb .. I’ll bookmark your website and take the feeds additionally…I am satisfied to find a lot of helpful information right here in the submit, we’d like develop extra techniques on this regard, thank you for sharing.

Leave a Reply

Your email address will not be published. Required fields are marked *