New Points of Differentiation

BM499 Strategic Management

David J. Bryce

September 24, 2002

 New Points of Differentiation
(Macmillian & McGrath)

To discover new points of differentiation, consider

the customers entire experience with a product or
service.
Creatively differentiate specific aspects of this
experience
Ask a series of questions about the customers
experiencethe consumption chain
Apply questions of what, where, who, when, how
at each point in the consumption chain
 The Consumption Chain
Sample Questions
1. Become Aware. How do people become aware of their need for your
product?
2. Locate. How do consumers find your offering?
3. Select. How do consumers make their final selections?
4. Order. How do customers order and purchase your product?
5. Receive. How is your product delivered?
6. Unpack. What happens when your product is delivered?
7. Install. How is your product installed?
8. Pay. How is your product paid for?
9. Store. How is your product stored?
10. Move. How is your product moved around?
11. Use. What is the customer really using your product for?
12. Get Help. What do customers need help with when they use your product?
13. Return. What about returns or exchanges?
14. Repair. How is your product repaired or serviced?
15. Discard. What happens when your product is disposed of or no longer used?
 Difference Between Value Chain and
Consumption Chain
Consumption chain is how consumers experience a
product or service
Value chain is how the company delivers a product or
service
Consumption chain emphasizes differentiation in product
and service featureswhich must ultimately become
rooted in a companys systems
Value chain emphasizes differentiation in a firms systems
and processeswhich ultimately affect consumer
perception and experience
Thus, the two concepts are related in terms of their
potential for strategic insight leading to competitive
advantage
Harley Fat Boy
A Harley?
Harley-Davidson Stock

1998
Harley-Davidson Stock