Ways to differentiate products

What's your issue actually?

Nowadays most businesses are adoption diversified strategies. There is product diversification and also market diversification. All other strategies are becoming extinct.

We cannot predict the actions of Jio. He was just benchmarking his new business. While he capture the market, he may resort to price leadership which is evident is telecom industry.

I am talking about porter's generic strategy .There are three strategies.,Cost leadership ,Differentiation,Focus strategies.

An organization apply differentiation ,when market is composed of many price -insensitive buyers.

But

In our module the meaning of differentiation is "greater product flexibilty ,compatibility ,lower costs ,improved service,less maintenance ,greater features etc." 

according to porter 's theory jio's strategy was cost leadership and in marketing theory , "market penetration strategy "is the suitable name.

Dear Shilpi,

In the text book the meaning of differentiation strategy is given exactly as you gave. What you wrote was the outcome of the differentiation strategy and it is given from the customer's point of view.

Jio's strategy is definitely a cost leadership strategy but it can't never be market penetration strategy because the features of the product is changed and made available at a very lower cost. In fact they were not charging anything from us for a major period.

Market penetration strategy works on increasing the sales to the existing market without making any major changes. Here the cost is definitely a change and also 4G is also a major change. Even though 4G was introduced by airtel many were not using it because of its higher cost. Hence most of us were using 4G for the first time. Market penetration is done by excessive promotional campaigns may be what VIVO is doing now. They are giving advert everywhere.

This is my opinion.