Differentiators
The specific features and attributes of a company's products, pricing, or positioning that allow it to win customers over competitors.
Differentiators is the third facet of the Strategy Diamond and addresses how a company will actually win in its chosen arenas — what makes customers choose it over alternatives. Hambrick and Fredrickson identify five common types: image (branding), customization, price, reliability, and product/service design innovation.
A common strategic failure is claiming multiple, conflicting differentiators at once — for example, positioning as both the cheapest option and the most premium option in the same arena. Differentiators need to be few, specific, and mutually reinforcing.
Differentiators should also connect directly to the company's economic logic: a differentiation strategy built on premium service quality, for instance, only works economically if customers are willing to pay a margin that funds that service level.
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