Competitive Differentiation

“Real” competitive differentiation is very important to prevent other companies from taking over your market and also to attract investors.  Intellectual property is usually the best and longest lasting type of differentiation.   Strong patents are excellent.  But, some types of patents are less powerful.

Types of Competitive Differentiation

Other types of competitive differentiation can be:

  • Business Relationships
    For some businesses, powerful relationships such as partner relationships can be strong differentiators
  • SEO
    For some online businesses, strong SEO can provide powerful differentiation
  • Sales Methods
    Can provide unique differentiation for some types of businesses

Whether mere positioning creates real Competitive Differentiation can be debated.  But, positioning can create illusion if not reality; and that can be very helpful.

Investors and strategic planners appreciate Competitive Differentiation where it appears that the company can sustain it; or at least keep ahead of the competition, until it attains a critical mass of customers.


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