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Essay / Research Paper Abstract
This 5 page paper looks at the way that Kensington Technology Group have been seeking to compete with innovation when they are unable to compete on the same basis as larger competitors such as Microsoft. The paper looks at the use of differentiation. The bibliography cites 5 sources.
Page Count:
5 pages (~225 words per page)
File: TS14_TEkensington.rtf
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Unformatted sample text from the term paper:
level of intellectual or human input due to their much smaller size. With these limitations and a market where there is little value given to differentiation, it can be difficult
to compete with those who have the cost advantages and are able to leverage more market power with the way thy can exert power up and down the supply chain.
There are many companies who find themselves in a similar position, such as Nintendo (Garrett, 2007). The aim of the company was not to compete head to head, but
to find a new way of competing. Historically there are many companies that have been founded or developed in this way, with the need to find new ways of competing
looking to find a way if attracting buyers. Kensington are looking at using differentiation. Differentiation is described by Porter as "when it [the company] provides something unique that
is valuable to buyers beyond simply offering a low price" (Porter, 1985; 120). This means that the products different in some way, this may be real value through features and
extras, perceived value, such as brand value (Grant, 2004). It may also be an advantage that is added though the value chain rather than directly in the product (Thompson, 2005).
The differentiation strategy will usually involve choosing either one, or preferably a few key features or characteristics which have a broad perceived value in the market or segment that
the company operates within (Thompson, 1998). Then the company can selectively adds costs where those features are added which customers will see as worth the additional cost (Thompson, 2005).
To undertake a strategy such as the opportunities need to be sought where differentiation may be developed that is not already supplied by another competitor. There is also the need
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