Differentiation strategies are not about pursuing uniqueness for the sake of being different. Differentiation is about understanding customers and how GM 's product can meet their needs. To this extent, the quest for differentiation advantage takes us to the heart of business strategy. The fundamental issues of differentiation are also the fundamental issues of business strategy: Who are GM 's customers? How does GM create value for them? And how does GM do it more effectively and efficiently than anyone else?
Because differentiation is about uniqueness, establishing differentiation advantage requires creativity – it cannot be achieved simply through applying standardized frameworks and techniques. This is not to say that differentiation advantage is not amenable to systematic analysis.
As have observed, there are two requirements for creating profitable differentiation. On the supply side, GM must be aware of the resources and capabilities through which it can create uniqueness (and do it better than competitors). On the demand side, the key is insight into customers and their needs and preferences. These two sides form the major components of our analysis of differentiation.
In analyzing differentiation opportunities, GM can distinguish tangible and intangible dimensions of differentiation. Tangible differentiation is concerned with the observable characteristics of a product or service that are relevant to customers’ preferences and choice processes.
These include size, shape, color, weight, design, material, and technology. Tangible differentiation also includes the performance of the product or service in terms of reliability, consistency, taste, speed, durability, and safety. Image differentiation are especially important for those products and services whose qualities and performance are difficult to ascertain at the time of purchase (“experience goods”). These include cosmetics, medical services, and education.
By offering uniqueness in its offerings, GM may inevitably target certain market niches. By selecting performance, engineering, and style as the basis on which BMW competes in the automobile industry, it inevitably appeals to different market segments than does VW. To the extent that differentiation is imitated by other companies, the result can be the creation of new market segments.
During the 1990s, General Motors’ segmented marketing strategy that targeted each brand on a specific price bracket and particular socioeconomic category ran into increasing problems as US customers showed less and less identification with the segments GM had defined for them. Demand analysis identifies customers’ demands for differentiation and their willingness to pay for it, but creating differentiation advantage also depends on a firm’s ability to offer differentiation. To identify the firm’s potential to supply differentiation, we need to examine the activities the firm performs and the resources it has access to.
Pros and cons
A strategy use by GM to seek competitive advantage through uniqueness (develop goods and services that are clearly different from those made available by the competitors)This strategy requires organizational strengths in marketing, research and development, technological leadership and creativity . They provide good services to the customer which services are different from other organization .
G.M. is a multinational corporation engaged in socially responsible operations, worldwide. It is dedicated to provide products and services of such quality that our customers will receive superior value while our employees and business partners will share in our success and our stock-holders will receive a sustained superior return on their investment These days, GM realize how important it is to have employees trained in good customer service skills working in their contact center if they want to enhance their reputation.
For example training staff in problem solving and the ability to multi task in areas such as navigating complex databases and switching between different computers to find information for the caller is now becoming a routine function in a modern contact center. It is therefore an advantage for call center employees in today’s workplace to have the ability to think quickly on their feet so they can deal quickly with involved information while working under pressure.
GM also providing Transportation Services: Here GM aim at providing top nick transportation services to the customers and satisfy them to maximum extent. GM know that a delay in shipping the freights can cause considerable loss to the clients and the business, therefore on-time delivery is extremely important to us. The network of truck agents which are located at all over the booking points ensure that your consignments reach to its final destination in full secured mode, GM also gratify to all your transportation needs by providing you door-to-door Pick Up & Delivery Transportation services.