Business Differentiation Quotes

Well," he said, "I don't believe that either." "Believe what? That I messed up? Why not?" "Weren't you just listening? I saw you in Spokane. Someone like you doesn't mess up freeze." I was about to give him the same line I had given the guardians, that killing Strigoi didn't make me invincible, but he cut me off: "Plus I saw your face out there." "Out.... on the quad?" "Yeah," several more quite moments passed. "I don't know what happened, but the way you looked...that wasn't the look of someone trying to get back at a person. It wasn't the look of someone blanking out of Alto's attack either. It was something different...I don't know. But you were completely consumed by something else—and honestly? Your expression? Kind of scary." "Yet...you aren't giving me a hard time over that either." "Not my business. If it was big enough to take you over like that, then it must be serious. But if push comes to shove, I feel safe with you, Rose. I know you'd protect me if there really was a Strigoi there." He yawned. "Okay. Now that I have bared my soul, can we please go to bed? Maybe you don't need beauty sleep, but some of us aren't so lucky.

Online word-of-mouth is very powerful. These days customer service is one of the most important differentiation factors used by customers to pick one brand over others.

You can’t ignore the importance of being unique, remarkable, and differentiated in a highly crowded market.

Thinking about what your customers like and what they exactly like are two different things.

Launching a similar product still needs some kind of differentiation.

Can you guess what makes me choose other restaurants over vegan restaurants when there is a perfect match in my dietary needs and those restaurants’ offerings? It is the inability of most of the vegan restaurants to differentiate between the needs of a vegan who never had meat and a vegan who is not born as one but became one with time.

Put bluntly, the struggle that so many companies have to differentiate or communicate their true value to the outside world is not a business problem, it's a biology problem. And just like a person struggling to put her emotions into words, we rely on metaphors, imagery and analogies in an attempt to communicate how we feel. Absent the proper language to share our deep emotions, our purpose, cause or belief, we tell stories. We use symbols. We create tangible things for those who believe what we believe to point to and say, "That's why I'm inspired." If done properly, that's what marketing, branding and products and services become; a way for organizations to communicate to the outside world. Communicate clearly and you shall be understood.

The great differentiator going forward, the next frontier for exponential growth, the place where individuals and organizations will find a new and sustainable competitive edge, resides in the area of human connectivity.

Instead of the concrete individual, you have the names of organizations and, at the highest point, the abstract idea of the State as the principle of political reality. The moral responsibility of the individual is then inevitably replaced by the policy of the State (raison d’etat). Instead of moral and mental differentiation of the individual, you have public welfare and the raising of the living standard. The goal and meaning of individual life (which is the only real life) no longer lie in the individual development but in the policy of the State, which is thrust upon the individual from outside and consists in the execution of an abstract idea which ultimately tends to attract all life to itself. The individual is increasingly deprived of the moral decision as to how he should live his own life, and instead is ruled, fed, clothed, and educated as a social unit, accommodated in the appropriate housing unit, and amused in accordance with the standards that give pleasure and satisfaction to the masses. The rulers, in their turn, are just as much social units as the ruled, and are distinguished only by the fact they are specialized mouthpieces of State doctrine. They do not need to be personalities capable of judgment, but thoroughgoing specialists who are unusable outside their line of business. State policy decides what shall be taught and studied.

He opened the door wearing an oversized wife-beater and dirty trunks to match. Funny, but he recognized me withouta struggle. Immediately, I assumed he was sober, which was a good thing. Yet, seeing me wasn’t expected or desired. For sure, I was the last person on his list of surprises. Jerry adjusted his head and sharpened his bloodshot eyes. It wasthen his booze-bated breath greeted me well before he did. Ok, he was in a stupor or maybe on the rebound. Next, soiled diapers stole the little oxygen I had left—and I was still OUTDOORS. Yet somehow, I mustered enough wind to greet my brother. I tried to beat him to the punch and said, “What’s up bruh?” What happened next stomped my soul me for years to come! He never bothered to truly acknowledge me. Yet, heresponded without hesitation, “You know I can’t have any company!” Then he violently slammed the door shut! Jerry was gone! I couldn’t differentiate from being stupid or dumbstruck. I just stood silent on his porch all alone for about five minutes. I’d dealt with Jerry’s nastiness many times before. But he would initially warm up before dropping his hammer. Without a doubt, l was lost, confused, and bewildered like a teen-age boy losing a prom date. Foolishly, I used logic to dissect my embarrassment. First, the guy scolded me as if I should’ve known better! To be fair, Jerry was the breadwinner. His wife left him years ago. That part I understood. Only a fool would have hung around his crazy ass. It was amazing they got together, let alone stayed that way long enough to create those children. Yet, all his kids were pushing the ages of twenty andabove. What the hell did he mean, “I can’t receive any company!” Of course, I heard those crying babies which madehim a granddaddy. That was strangely obvious to his existence. Yes, the cycle continues! Second, I really didn’t care to go inside. I didn’t want to be in his business. I just wanted his input on Aunt Kathy’s memorial.

The entrepreneur’s mind-set is completely different to the employee’s mind-set. The entrepreneur finds it abhorrent to conform to organizational norms, whilst the employee finds joy and stability in all that’s tried and true. It’s not that one’s wrong and the other is right. It’s the mind-set that differentiates the two.

The arts and humanities are not mere entertainment, to be turned to for relaxation after a busy day spent solving differential equations; they are our templates for living, for governing ourselves and our societies. Nor can science offer any help with the knottier problems besetting the human race. It can remedy bad smells, bad pains, and bad roads, but not bad behavior, bad government, or bad ideas.

Someone is sitting in the shade today because someone planted a tree a long time ago. —Warren Buffett

The organization's long-term success is based on a set of differentiated capabilities and its core competency.

Decision makers are the only differentiators between the successful organizations and the less successful ones.

Risk is the ultimate differentiator. I have always had a deep and complex relationship with it. I am not a reckless person, but taking risks is really the only way to consistently achieve above-average returns—in life as well as in investments. My father proved that when he left Poland. I am probably more comfortable with risk than most people. That’s because I do as much as I can to understand it. To me, risk-taking rests on the ability to see all the variables and then identify the ones that will make or break you.

no forces interfere with the process of entry by competitors, profitability will be driven to levels at which efficient firms earn no more than a “normal” return on their invested capital. It is barriers to entry, not differentiation by itself, that creates strategic opportunities.

She isn’t simply unafraid of a good fight, she lives for it, and will often actively go looking for a fight. This is what differentiates your run-of-the-mill fighter from a crusader. The Warrior Princess Submissive is no shrinking violet. She is that dyed-in-the-wool Republican who attends the Democratic National Convention wearing a Rand Paul t-shirt. She is the African-American woman who invites herself to a Ku Klux Klan rally without a hood... and hands out business cards to everyone there. She is the woman who invites the Jehovah's Witnesses into her home and feeds them dinner, just for the opportunity to defend Christmas - even though she may be a Pagan. When the other girls in high school or college were trying out for the pep squad or cheerleading, she set her sights on the debate team. While her friends agonize over how to “fit in” socially, she is war gaming ideas on how to change society to fit her ideals and principles. Are you someone she considers to be immoral or evil? Run. She will eviscerate you.

Supply chain leaders manage complex systems with complex processes with increasing complexity. Leaders

Time is money. If we could take one day of transit time out of the supply chain, we could free up $1 billion in cash. Unfortunately, we cannot.

supply chain was and still is the silent enabler behind great companies, world economies, and successful communities. It

Today, it is focused on not just building chains but also on the design of agile networks.

The most important characteristic of content marketing today is not quality or quantity. It’s insight. And that is the differentiator lacking almost everywhere.

Branding is the art of differentiation

The ability to differentiate between life challenges and who you are at the core is everything. A failed business, relationship or dream doesn’t make you a failure as a person.

Innovation shouldn’t be serendipity. It is a management process and the differentiated business capability.

Next, name your scalable product or service. Naming your offering gives you ownership of it and helps you differentiate it from those of potential competitors.

At a boardroom or at a 'nuke proof' datacenter, a Chief Information Security Officer 2.0 participates in creating and protecting the digital value. The role of a CISO evolves from a ´policeman of computers´ to a ´dietician of risk appetite´. For success in digital transformation, turn the comprehensive risk management and cybersecurity into key business differentiators.

One of the ways in which cooperatives rectify the injustices of capitalism is by instituting a relatively equal compensation-scheme for their members. While in the U.S. the average ratio of CEO compensation in the Fortune 500 companies to the ordinary worker’s has recently been reported as 344:1,49 in co-ops the pay-differential between management and the average worker rarely exceeds 4:1. In collectives, everyone is usually paid the same amount. For example, a British study from the 1980s reports that all of the dozens of small co-ops it researched had lower pay-differentials than conventional businesses, and most had little or no differential at all.50 At Arizmendi Bakery everyone currently receives about 20 dollars an hour plus a percentage of the year’s profits. The worker-owners of Mondragon Bookstore and Coffeehouse in Canada earn the same rate of pay. At Equal Exchange, a relatively large co-op, there is a 4:1 pay ratio.

In a nutshell, Blue Ocean Strategy is about creating completely new industries through fundamental differentiation as opposed to competing in existing industries by tweaking established models. Rather than outdoing competitors in terms of traditional performance metrics, Kim and Mauborgne advocate creating new, uncontested market space through what the authors call value innovation.

The term supply chain is not new. It is fundamental to military strategy. It was the difference between winning and losing in the Napoleonic wars and the Battle of the Bulge in World War II. The

A third path that a business can follow—an offshoot of our two main strategies—is pursuing a highly targeted market and focusing its resources on serving that tight segment, whether through cost leadership or differentiation. This is the focus strategy.

What differentiates the success stories from the failures is that the successful entrepreneurs had the foresight, the ability, and the tools to discover which parts of their plans were working brilliantly and which were misguided, and adapt their strategies accordingly.

If you think of capital allocation more broadly as resource allocation and include the deployment of human resources, you find again that Singleton had a highly differentiated approach. Specifically, he believed in an extreme form of organizational decentralization with a wafer-thin corporate staff at headquarters and operational responsibility and authority concentrated in the general managers of the business units. This was very different from the approach of his peers, who typically had elaborate headquarters staffs replete with vice presidents and MBAs.

Well, the same thing happens in the drama and business of this world, where some play emperors, others pontiffs, in short, all the figures that can be presented in a play, but at the end, which is when life is over, death removes all the clothing that differentiated them, and are all equal in the grave.

If something does not directly differentiate you from your competition and drive business value creation, see if there is an AWS building block that can take care of it for you. There probably is. Then use that building block instead of wasting your time and effort recreating something that is a utility.

As Harvard developmental psychologist Howard Gardner reminds us, The young child is totally egocentric—meaning not that he thinks selfishly only about himself, but to the contrary, that he is incapable of thinking about himself. The egocentric child is unable to differentiate himself from the rest of the world; he has not separated himself out from others or from objects. Thus he feels that others share his pain or his pleasure, that his mumblings will inevitably be understood, that his perspective is shared by all persons, that even animals and plants partake of his consciousness. In playing hide-and-seek he will “hide” in broad view of other persons, because his egocentrism prevents him from recognizing that others are aware of his location. The whole course of human development can be viewed as a continuing decline in egocentrism.2

  Our Sales Story. The story is foundational to everything we do in sales, and we use bits and pieces of it in all of our weapons. By “story” I’m referring to the language or talking points we use when asked what we do or when we tell someone about our business. It’s so critical to our success that the next two chapters are dedicated to helping you create and implement a succinct, powerful, differentiating, customer-focused story.

As shown in figure 2-2, to break the trade-off between differentiation and low cost and to create a new value curve, there are four key questions to challenge an industry’s strategic logic and business model: Which of the factors that the industry takes for granted should be eliminated? Which factors should be reduced well below the industry’s standard? Which factors should be raised well above the industry’s standard? Which factors should be created that the industry has never offered?

International trade seems to be the topic of the night, but there are a few differentiations—one talk is about the newest tax codes and how they can better benefit corporations. Snore. Another presents a variation on an old business model. It’s an original idea, but not practical. By the time the fifth student finishes, I’ve met my limit. I nudge Celia out of her reverie. “I’m ready to go,” I begin to say, but stop myself before I get the words out. The woman ascending the stairs to the stage has caught my eye, and all thoughts of leaving disappear. Something about the way she moves is captivating—the wiggle of her hips suggests an undercurrent of sexuality, and her back is straight with confidence. Then she turns toward the audience, and my breathe catches. Even here, twelve rows away, I can tell she’s the most beautiful woman I’ve ever seen. Her dark brown hair falls just so around her face, accentuating sharp cheekbones. Her eyes are dark. Her short dress reveals long, lean legs. The modest cleavage of her outfit can’t hide perfectly plump tits. There’s something else—something about her carriage that makes me sit up and take notice. And she hasn’t even spoken yet.

What differentiates mediocre people from exceptional ones is how deeply they process. Most people are surface-level processors, but the best of the best go much deeper. Long-term thinking versus short-term thinking is the difference between a grand master and an amateur. Surface-level processors are looking for a quick fix. They are thinking only one move ahead, and their goal is to make the issue disappear for now. Deep-level processors look beneath the surface for causes. They are thinking several moves ahead and planning a sequence of moves to make sure the issue doesn’t happen again.

A slave, Marcus Cato said, should be working when he is not sleeping. It does not matter whether his work in itself is good in itself—for slaves, at least. This sentiment still survives, and it has piled up mountains of useless drudgery. I believe that this instinct to perpetuate useless work is, at bottom, simply fear of the mob. The mob (the thought runs) are such low animals that they would be dangerous if they had leisure; it is safer to keep them too busy to think. A rich man who happens to be intellectually honest, if he is questioned about the improvement of working conditions, usually says something like this: "We know that poverty is unpleasant; in fact, since it is so remote, we rather enjoy harrowing ourselves with the thought of its unpleasantness. But don’t expect us to do anything about it. We are sorry fort you lower classes, just as we are sorry for a cat with the mange, of your condition. We feel that you are much safer as you are. The present state of affairs suits us, and we are not going to take the risk of setting you free, even by an extra hour a day. So, dear brothers, since evidently you must sweat to pay for our trips to Italy, sweat and be damned to you.” This is particularly the attitude of intelligent, cultivated people; one can read the substance if it in a hundred essays. Very few cultivated people have less than (say) four hundred pounds a year, and naturally they side with the rich, because they imagine that any liberty conceded to the poor is a threat to their own liberty. foreseeing some dismal Marxian Utopia as the alternative, the educated man prefers to keep things as they are. Possibly he does not like his fellow-rich very much, but he supposes that even the vulgarest of them are less inimical to his pleasures, more his kind of people, than the poor, and that he had better stand by them. It is this fear of a supposedly dangerous mob that makes nearly all intelligent people conservative in their opinions. Fear of the mob is a superstitious fear. It is based on the idea that there is some mysterious, fundamental difference between rich and poor, as though they were two different races, like negroes and white men. But in reality there is no such difference. The mass of the rich and the poor are differentiated by their incomes and nothings else, and the average millionaire is only the average dishwasher dressed in a new suit. Change places, and handy dandy, which is the justice, which is the thief? Everyone who has mixed on equal terms with the poor knows this quite well. But the trouble is that intelligent, cultivated people, the very people who might be expected to have liberal opinions, never do mix with the poor. For what do the majority of educated people know about poverty? In my copy of Villon’s poems the editor has actually thought it necessary to explain the line “Ne pain ne voyent qu'aux fenestres” by a footnote; so remote is even hunger from the educated man’s experience. From this ignorance a superstitious fear of the mob results quite naturally. The educated man pictures a horde of submen, wanting only a day’s liberty to loot his house, burn his books, and set him to work minding a machine or sweeping out a lavatory. “Anything,” he thinks, “any injustice, sooner than let that mob loose.

Well, the same thing happens in the drama and business of this world, where some play emperors, others pontiffs, in short, all the figures that can be presented in a play, but at the end, which is when life is over, death removes all the clothing that differentiated them, and all are equal in the grave.” “That’s a fine comparison,” said Sancho, “though not so new that I haven’t heard it many times before, like the one about chess: as long as the game lasts, each piece has its particular rank and position, but when the game’s over they’re mixed and jumbled and thrown together in a bag, just the way life is tossed into the grave.”1 “Every day, Sancho,” said Don

have you ever seen a play that presents kings, emperors, and pontiffs, knights, ladies, and many other characters? One plays the scoundrel, another the liar, this one the merchant, that one the soldier, another the wise fool, yet another the foolish lover, but when the play is over and they have taken off their costumes, all the actors are equal.” “Yes, I have seen that,” responded Sancho. “Well, the same thing happens in the drama and business of this world, where some play emperors, others pontiffs, in short, all the figures that can be presented in a play, but at the end, which is when life is over, death removes all the clothing that differentiated them, and all are equal in the grave.

What does differential susceptibility mean for you? If you tend to be depressed or anxious, it may mean that you were more affected by a difficult childhood (troubles at home or at school) than other adults with similar childhood experiences. (Or that you are simply under too much stress, or something else is making you depressed or anxious.) While someone might tell you that you are making too much of your childhood problems, this research says you are probably not. You really were more affected and would benefit or have already benefited from help if you sought it, even if others would not feel the need. More important, and a special reason for hope—you may well gain more from help than others would. On the other hand, this research also means that if you had a reasonably good childhood, people who do not know you well may hardly notice your sensitivity. They will be too busy admiring its parts—your creativity, conscientiousness, kindness, and foresight. You have probably learned to take downtime when you need it, which is more often than others do, and avoid overstimulating environments, but only people close to you see this side of you.

All of this is by way of coming around to the somewhat paradoxical observation that we speak with remarkable laxness and imprecision and yet manage to express ourselves with wondrous subtlety—and simply breathtaking speed. In normal conversation we speak at a rate of about 300 syllables a minute. To do this we force air up through the larynx—or supralaryngeal vocal tract, to be technical about it—and, by variously pursing our lips and flapping our tongue around in our mouth rather in the manner of a freshly landed fish, we shape each passing puff of air into a series of loosely differentiated plosives, fricatives, gutturals, and other minor atmospheric disturbances. These emerge as a more or less continuous blur of sound. People don’t talk like this, theytalklikethis. Syllables, words, sentences run together like a watercolor left in the rain. To understand what anyone is saying to us we must separate these noises into words and the words into sentences so that we might in our turn issue a stream of mixed sounds in response. If what we say is suitably apt and amusing, the listener will show his delight by emitting a series of uncontrolled high-pitched noises, accompanied by sharp intakes of breath of the sort normally associated with a seizure or heart failure. And by these means we converse. Talking, when you think about it, is a very strange business indeed. And yet we achieve the process effortlessly. We absorb

We have a system we follow every time we get asked to create a product logo. Clients like the work we produce and we’re able to charge a good dollar because clients know a product logo is something they will use for a long time. Once we create one product logo, we have our foot in the door and clients often come back as they launch new products.” Ted considered Alex’s conclusion. “Tell me about the system you follow for creating logos.” “It’s nothing too formal, but we always start off by asking the client to describe their vision for their product and how they differentiate themselves from their competitors.” Ted began to make notes. “That sounds like a good first step. Let’s call it Visioning.” Step 1: Visioning “What’s the next step?” asked Ted. “After we establish the client’s goals, we go through an exercise where we ask the client to personify their product. For example, we’ll ask questions like, ‘If your product was a famous actor, who would it be?’ and ‘If your product was a rock star, who would it be?’ One of our favorite questions is a little goofy: ‘If your product was a cookie, what kind of cookie would it be?’ These questions force the client to think about the personality they want to come through in their logo.” “That sounds unique, Alex. Let’s call that step two and give it a name like Personification.” Step 2: Personification “What’s your next step in designing a logo?” “We then go back to the office and use a pencil and paper to freehand sketch

To understand how commodity money emerges, we return in more detail to the easy money trap we first introduced in Chapter 1, and begin by differentiating between a good's market demand (demand for consuming or holding the good for its own sake) and its monetary demand (demand for a good as a medium of exchange and store of value). Any time a person chooses a good as a store of value, she is effectively increasing the demand for it beyond the regular market demand, which will cause its price to rise. For example, market demand for copper in its various industrial uses is around 20 million tons per year, at a price of around $5,000 per ton, and a total market valued around $100 billion. Imagine a billionaire deciding he would like to store $10 billion of his wealth in copper. As his bankers run around trying to buy 10% of annual global copper production, they would inevitably cause the price of copper to increase. Initially, this sounds like a vindication of the billionaire's monetary strategy: the asset he decided to buy has already appreciated before he has even completed his purchase. Surely, he reasons, this appreciation will cause more people to buy more copper as a store of value, bringing the price up even more. But even if more people join him in monetizing copper, our hypothetical copper-obsessed billionaire is in trouble. The rising price makes copper a lucrative business for workers and capital across the world. The quantity of copper under the earth is beyond our ability to even measure, let alone extract through mining, so practically speaking, the only binding restraint on how much copper can be produced is how much labor and capital is dedicated to the job.

Actually listening is the critical differentiator between a successful business with happy customers… and everyone else.

Lesson two: Look for whether you can turn a price-taker business into a price-maker by differentiating service and/or customising product specification. If you can, you will probably be able to buy low and sell high. The UMH management team delivered on both service and product differentiation, so enabling rapid earnings growth with existing and new customers.

As Nate Silver, author of The Signal and the Noise: Why So Many Predictions Fail—But Some Don’t, points out, “ice cream sales and forest fires are correlated because both occur more often in the summer heat. But there is no causation; you don’t light a patch of the Montana brush on fire when you buy a pint of Häagen-Dazs.” Of course, it’s no surprise that correlation isn’t the same as causality. But although most organizations know that, I don’t think they act as if there is a difference. They’re comfortable with correlation. It allows managers to sleep at night. But correlation does not reveal the one thing that matters most in innovation—the causality behind why I might purchase a particular solution. Yet few innovators frame their primary challenge around the discovery of a cause. Instead, they focus on how they can make their products better, more profitable, or differentiated from the competition. As W. Edwards Deming, the father of the quality movement that transformed manufacturing, once said: “If you do not know how to ask the right question, you discover nothing.” After decades of watching great companies fail over and over again, I’ve come to the conclusion that there is, indeed, a better question to ask: What job did you hire that product to do? For me, this is a neat idea. When we buy a product, we essentially “hire” something to get a job done. If it does the job well, when we are confronted with the same job, we hire that same product again. And if the product does a crummy job, we “fire” it and look around for something else we might hire to solve the problem. Every day stuff happens to us. Jobs arise in our lives that we need to get done. Some jobs are little (“ pass the time while waiting in line”), some are big (“ find a more fulfilling career”). Some surface unpredictably (“ dress for an out-of-town business meeting after the airline lost my suitcase”), some regularly (“ pack a healthy, tasty lunch for my daughter to take to school”). Other times we know they’re coming. When we realize we have a job to do, we reach out and pull something into our lives to get the job done. I might, for example, choose to buy the New York Times because I have a job to fill my time while waiting for a doctor’s appointment and I don’t want to read the boring magazines available in the lobby. Or perhaps because I’m a basketball fan and it’s March Madness time. It’s only when a job arises in my life that the Times can solve for me that I’ll choose to hire the paper to do it. Or perhaps I have it delivered to my door so that my neighbors think I’m informed—and nothing about their ZIP code or median household income will tell the Times that either.

That realization helped Moesta and his team begin to understand the struggle these potential home buyers faced. “I went in thinking we were in the business of new home construction,” recalls Moesta. “But I realized we were instead in the business of moving lives.” With this understanding of the Job to Be Done, dozens of small, but important, changes were made to the offering. For example, the architect managed to create space in the units for a classic dining room table by reducing the size of the second bedroom by 20 percent. The company also focused on helping buyers with the anxiety of the move itself, which included providing moving services, two years of storage, and a sorting room space on the premises where new owners could take their time making decisions about what to keep and what to discard without the pressure of a looming move. Instead of thirty pages of customized choices, which actually overwhelmed buyers, the company offered three variations of finished units—a move that quickly reduced the “cold feet” contract cancellations from five or six a month to one. And so on. Everything was designed to signal to buyers: we get you. We understand the progress you’re trying to make and the struggle to get there. Understanding the job enabled the company to get to the causal mechanism of why its customers might pull this solution into their lives. It was complex, but not complicated. That, in turn, allowed the housing company to differentiate its offering in ways competitors weren’t likely to copy—or even understand. A jobs perspective changed everything. The company actually raised $ 3,500 (profitably), which included covering the cost of moving and storage. By 2007, when sales in the industry were off by 49 percent and the market all around them was plummeting, the developers had actually grown the business 25 percent.

Free” has an incredible power that no other pricing does. The Duke behavioral economist Dan Ariely wrote about the power of free in his excellent book Predictably Irrational, describing an experiment in which he offered research subjects the choice of a Lindt chocolate truffle for 15 cents or a Hershey’s Kiss for a mere penny. Nearly three-fourths of the subjects chose the premium truffle rather than the humble Kiss. But when Ariely changed the pricing so that the truffle cost 14 cents and the Kiss was free—the same price differential—more than two-thirds of the subjects chose the inferior (but free) Kisses. The incredible power of free makes it a valuable tool for distribution and virality. It also plays an important role in jump-starting network effects by helping a product achieve the critical mass of users that is required for those effects to kick in. At LinkedIn, we knew that our basic accounts had to be free if we wanted to get to the million users we theorized represented critical mass. Sometimes you can offer a product for free and still be profitable; in the advertising-driven business model, a large enough mass of free users can be valuable even if they never pay for your service. Facebook, for example, doesn’t charge its users a dime, but it is able to generate large amounts of high-gross-margin revenue by selling targeted advertising. But sometimes a product doesn’t lend itself to the advertising model, as is the case with many services used by students and educators. Without third-party revenue, the problem with offering your product to users for free is that you can’t offset your lack of sales by “making it up in volume.

A product can be differentiated from the competition by creative advertising and promotion, even if competing products are physically identical.

A distribution strategy can differentiate your product from the crowd.

Branding is a key communication tool and technique, which provides both consumers and manufactures with a way of differentiating their product or service.

In today’s world, clicks are sexier than bricks. There

The bricks of the supply chain are analogous to the children’s story The Three Little Pigs. When

In the early days of supply chain management, manufacturing and distribution processes were insourced. Companies owned their bricks and mortar, and products were made and sold within the same region. Today’s supply chain is largely outsourced. Manufacturing

The key differentiator, then, between happy high achievers and the rest is that happy high achievers are extremely vigilant about only allowing relationships into their lives that add to their energy. This includes their marriages as well as their relationships with their families, companies, boards of directors, key staff, and important clients. They make it a point to only allow relationships that are net additive. If a relationship isn’t net additive, it’s no longer one of their primary relationships. It gets shifted or it is gone.

Creativity is to ads as product quality is to cars, airplanes and electronic equipment – it’s absolutely necessary, and it needs to be built-in to the product, but it is not the only factor that matters, and it hardly provides sustainable differentiation from one agency to another. True, one agency will be “hot” for a given period and will grow and win business (one thinks of Crispin Porter + Bogusky or mcgarrybowen in recent years), but then the wheel turns, and the hot creative agencies of today become targets for other upstarts – like Droga5, 72andSunny, or Anomaly – and are eventually superseded in the same way that professional tennis stars are eventually vanquished at Wimbledon.

The high-mature organizational capability is the digital business differentiator, to keep the business unique, competitive, innovative, and improve the overall business maturity significantly.

This is unsurprising. The history of the world is the history of people investing in dying trends to follow the crowd, whereas the people looking forwards and developing rarer skills and abilities get ahead.   This is easy enough to see in investing and business – you don’t want to be in an aggressive commoditized space with no differentiation, and you don’t want to buy the asset class that’s overpriced because everyone else invests in it without checking the fundamentals.

Information Management becomes the core capability of the digital organization, and it is the key differentiator between digital leaders and laggards.

Leadership including directorship is crucial to strengthen the business links and weave them to the differentiated business capabilities.

Part of their approach involved making structure change to group competitive work more tightly together and separate it from noncompetitive work. The mind-set required by the two workforces is different—one to strive toward differentiation and excellence, one to aim for extraordinary efficiency. Non-competitive work is not necessarily less important—many non-strategic tasks, such as payroll, sales administration, and network operations, are absolutely crucial for running the business. But non-competitive work tends to be more transactional in nature. It often feels more urgent as well. And herein lies the problem. If the same product expert who answers demanding administrative questions and labors to fill out complicated compliance paperwork is also responsible for helping to craft unique, integrated solutions for clients, the whole client experience—the competitive work—could easily fall apart. Prying apart these two different types of activities so different teams can perform them ensures that vital competitive work is not engulfed by less competitive tasks.

When we fail to differentiate between self and other in a mentoring relationship, we run the risk of projecting our own lived experience onto our mentee.

The solution to fighting competition is to leave behind your competitors with the help of differentiation. The more you will be differentiated from others, the more it will become easier for your customers to pick you over others as well.

However, a very large component of what is meant by works for our business is that there is a real market there (large enough to sustain a business), we can successfully differentiate from the many competitors out there, we can cost‐effectively

He realized retailers were using his antiques for differentiation, and that he was not in the antique business but the brand identity business. This realization would make him millions.

The engine is never your salary; the engine is the employer's pressing business needs. The next car back has your responsibilities that will address the company's needs and goals. The next car back is filled with your differentiators that address the employer's pressing business needs. The next car back might be a bet on how your unique capabilities will address the company's needs and the performance that you will achieve. The next car back is filled with other differentiators and additional Storytelling Issues. The caboose is your salary and annual bonus. The caboose is always attached to the train and rides along, but it comes at the end of the discussion, not the beginning of the conversation.

Design—that is, utility enhanced by significance—has become an essential aptitude for personal fulfillment and professional success for at least three reasons. First, thanks to rising prosperity and advancing technology, good design is now more accessible than ever, which allows more people to partake in its pleasures and become connoisseurs of what was once specialized knowledge. Second, in an age of material abundance, design has become crucial for most modern businesses—as a means of differentiation and as a way to create new markets. Third, as more people develop a design sensibility, we’ll increasingly be able to deploy design for its ultimate purpose: changing the world.

Like any company, we have a corporate culture formed not only by our intentions but also as a result of our history. For Amazon, that history is fairly fresh and, fortunately, it includes several examples of tiny seeds growing into big trees. We have many people at our company who have watched multiple $10 million seeds turn into billion dollar businesses. That first-hand experience and the culture that has grown up around those successes is, in my opinion, a big part of why we can start businesses from scratch. The culture demands that these new businesses be high potential and that they be innovative and differentiated, but it does not demand that they be large on the day that they are born. I remember how excited we were in 1996 as we crossed $10 million in book sales. It wasn’t hard to be excited—we had grown to $10 million from zero. Today, when a new business inside Amazon grows to $10 million, the overall company is growing from $10 billion to $10.01 billion. It would be easy for the senior executives who run our established billion dollar businesses to scoff. But they don’t. They watch the growth rates of the emerging businesses and send emails of congratulations. That’s pretty cool, and we’re proud it’s a part of our culture.

Watch what they do, not what they say Watching what your customers are doing—or trying to do—with your product can light the way forward. But you have to be careful to pay attention to what they do and not just what they say. Expect to have your theories of human behavior tested Your theory about how individuals and groups behave should underlie your strategy, your product design, your incentive program—every decision you make. But be open and alert to when your customers show you a different theory or direction. That could become your product’s point of differentiation. Follow the leaders: Your customers To grow your business, you may have to give up control. Look for instances when your customers hack or hijack your product, and then go along for the ride. Get Mr. Spock and Dr. McCoy working together Customer data is your Mr. Spock, detached and logical. Customer emotion is your Dr. McCoy, passionate and all too human. Think of yourself as Captain Kirk, responsible for making the two work together to get the best out of each.

Power: the set of conditions creating the potential for persistent differential returns Power is the core concept of Strategy and of this book, too. It is the Holy Grail of business—notoriously difficult to reach, but well worth your attention and study.

That is the biggest differentiator. Even today, with all the acquisitions being done in the asset management business, most of them are just consolidation plays. Our acquisitions were based on growth and building deeper relationships with our clients.

the process of design is finally being seen as the last great differentiator of businesses and economies; while on the other, the outputs are increasingly seen as commodities.

For a business to break out and reach escape velocity, it needs a ton of differentiation. It needs to profoundly upset and disrupt the status quo.

One way to make yourself less vulnerable to copycats is to build a moat around your business. How Can I Build a Moat? As you scale your company, you need to think about how to proactively defend against competition. The more success you have, the more your competitors will grab their battering ram and start storming the castle. In medieval times, you’d dig a moat to keep enemy armies from getting anywhere near your castle. In business, you think about your economic moat. The idea of an economic moat was popularized by the business magnate and investor Warren Buffett. It refers to a company’s distinct advantage over its competitors, which allows it to protect its market share and profitability. This is hugely important in a competitive space because it’s easy to become commoditized if you don’t have some type of differentiation. In SaaS, I’ve seen four types of moats. Integrations (Network Effect) Network effect is when the value of a product or service increases because of the number of users in the network. A network of one telephone isn’t useful. Add a second telephone, and you can call each other. But add a hundred telephones, and the network is suddenly quite valuable. Network effects are fantastic moats. Think about eBay or Craigs-list, which have huge amounts of sellers and buyers already on their platforms. It’s difficult to compete with them because everyone’s already there. In SaaS—particularly in bootstrapped SaaS companies—the network effect moat comes not from users, but integrations. Zapier is the prototypical example of this. It’s a juggernaut, and not only because it’s integrated with over 3,000 apps. It has widened its moat with nonpublic API integrations, meaning that if you want to compete with it, you have to go to that other company and get their internal development team to build an API for you. That’s a huge hill to climb if you want to launch a Zapier competitor. Every integration a customer activates in your product, especially if it puts more of their data into your database, is another reason for them not to switch to a competitor. A Strong Brand When we talk about your brand, we’re not talking about your color scheme or logo. Your brand is your reputation—it’s what people say about your company when you’re not around.

Power, the potential to realize persistent differential returns, is the key to value creation. Power is created if a business attribute is simultaneously: Superior—improves free cash flow Significant—the cash flow improvement must be material Sustainable—the improvement must be largely immune to competitive arbitrage

It becomes a question of 'How do we convey our differentiation instantaneously?' and drive a wedge between any apparent (or assumed) sameness in the marketplace.

Thanks to time differentials and good telephone service, the world money market, unlike stock exchanges, race tracks, and gambling casinos, practically never closes. London opens an hour after the Continent (or did until February 1968, when Britain adopted Continental time), New York five (now six) hours after that, San Francisco three hours after that, and then Tokyo gets under way about the time San Francisco closes. Only a need for sleep or a lack of money need halt the operations of a really hopelessly addicted plunger anywhere.

What kind of experience do you want to deliver to your customers? Starbucks wanted to bring the Italian coffee-drinking ritual to customers in the USA and around the world. How do you want to stand out by offering a better experience to your customers? What’s the experience they want to have in every interaction with your brand? Can you craft an experience around how your customers want to feel? Do they want to be delighted, nurtured, listened to, pampered, or something else? How are you going to get them there? How does your customer experience differentiate you from your competitors? Instagram’s simplicity and the fact that social sharing was built into the user interface offered users a different level of engagement with the app than that provided by other photo-sharing apps. How does experiencing your brand, from the first point of contact to the last, make your customers feel? How could you make that experience something that your customers can’t wait to share? Dollar Shave Club customers feel savvy and they want to share the discovery of the secret with their friends.

From my days in the Pit, I learned that the game is all about fielding the best athletes. Whoever fielded the best team there won. Reuben Gutoff reinforced that it was no different in business. Winning teams come from differentiation, rewarding the best and removing the weakest, always fighting to raise the bar. I was lucky to get out of the pile and learn this my very first year at GE—the hard way, by nearly quitting the company.

Your brand exists to differentiate. “Same crap, different day” won’t do it. A day that goes by without breaking some sacred branding rule is a day a brand has lost to rise above the status quo. By breaking those rules with insight, intelligent and innovation, your brand can get heard in a world that’s simply too busy to listen.

Networking in science is just as important as networking in business. Especially with the explosion and divergence of knowledge, collecting a bunch of smart friends is a real differentiator.

Once you’ve taken the time to develop a comprehensive list of differentiators, you will want to use them quickly and efficiently to support the value propositions you offer.

A common mistaken conclusion made by companies is they think ‘people are cheap’ and want only the best price. That’s only true if you’re only giving them the same dismal choices with no differentiation and thus no value. That is the exact point when consumers start to look at price.

Democracy is only good for a society where individuals are educated and have the ability to differentiate right from wrong without any influences from the outside. India is the biggest democracy in the world, yet, why is it so venal, divided and poor? America is the greatest democracy of the world, yet, it only has two main political parties, which are heavily influenced by lobbyists from religious groups, and powerful institutions like businesses, trade unions and think-tanks. In contrast, China is a nation ruled by one party, yet it has prospered during the last three decades, which is nothing less than a miracle. No other country on earth has ever achieved that feat. No system is good or bad for all. I am not saying democracy is bad, but it is not good for all. It can be good or bad for certain periods of time, circumstances and societies. There is no such thing as one idea fits all.

No amount of marketing will change an experience.” —Brian Solis Customer experience is everything that happens when people encounter your brand. And whether it’s online or offline, you get to design it. Most people don’t put money on the table and hope that they hate the results of their choice. They actually want to fall in love with you and your brand. It’s your job to give them a reason to. The feeling your customer leaves with, as she walks out the door or clicks away from your website, is your best opportunity to differentiate your brand. Commodities are just stuff with a fixed value—until they’re not. The brands you love and talk about are not the ones that competed on price or features. They are the ones that changed how it felt to buy a cup of coffee, slip on a pair of shoes, or open a laptop in a café.

Stay humble and customer-focused. No matter what business you are in, you are serving your customers. You differentiate yourself by how well you satisfy, and keep satisfying, your customers’ needs. Don’t become so enamored with your idea or product that you believe it will “sell itself.” There is always a better widget waiting in the wings. What will make your ideas successful is your personal ability to convince customers that you stand behind what you are selling.

It is no exaggeration to say that the vast business of calculus made possible most of the practical triumphs of post-medieval science; nor to say that it stands as one of the most ingenious creations of humans trying to model the changeable world around them. So by the time a scientist masters this way of thinking about nature, becoming comfortable with the theory and the hard, hard practice, he is likely to have lost sight of one fact. Most differential equations cannot be solved at all. “If you could write down the solution to a differential equation,” Yorke said, “then necessarily it’s not chaotic, because to write it down, you must find regular invariants, things that are conserved, like angular momentum. You find enough of these things, and that lets you write down a solution. But this is exactly the way to eliminate the possibility of chaos.

It’s important for intuitive people to differentiate other people’s energy from their own pre-existing emotional state.

A brand is… A promise. The way we differentiate this from that. Whatever the customer believes about a company. A feeling created. The tangible representation of personal or company values. A set of expectations met. The way a person or company communicates what they do and why they do it. Trust built between a customer and a business. A company asset. Your word. A set of unique benefits. Reasons to buy, or buy into, something. A story we tell ourselves. Communication with and without words. A symbol of belonging. Signals sent. A waymarker. The experience a customer has. A complete field guide to a business. The impression that’s left at the last interaction.

Starting a new South Indian restaurant is a really hard way to make money. If you lose sight of competitive reality and focus on trivial differentiating factors—maybe you think your naan is superior because of your great-grandmother’s recipe—your business is unlikely to survive.

People want to hang on to things that work—stories that work, methods that work, strategies that work. You figure something out, it works, so you keep doing it—this is what an organization that is committed to learning does. And as we become successful, our approaches are reinforced, and we become even more resistant to change. Moreover, it is precisely because of the inevitability of change that people fight to hold on to what they know. Unfortunately, we often have little ability to distinguish between what works and is worth hanging on to and what is holding us back and worth discarding. If you polled the employees of any creative company, my guess is that the vast majority would say they believe in change. But my experience, postmerger, taught me something else: Fear of change—innate, stubborn, and resistant to reason—is a powerful force. In many ways, it reminded me of Musical Chairs: We cling as long as possible to the perceived “safe” place that we already know, refusing to loosen our grip until we feel sure another safe place awaits. In a company like Pixar, each individual’s processes are deeply interconnected with those of other people, and it is nearly impossible to get everyone to change in the same way, at the same pace, all at once. Frequently, trying to force simultaneous change just doesn’t seem worth it. How, as managers, do we differentiate between sticking with the tried-and-true and reaching for some unknown that might—or might not—be better? Here’s what we all know, deep down, even though we might wish it weren’t true: Change is going to happen, whether we like it or not. Some people see random, unforeseen events as something to fear. I am not one of those people. To my mind, randomness is not just inevitable; it is part of the beauty of life. Acknowledging it and appreciating it helps us respond constructively when we are surprised. Fear makes people reach for certainty and stability, neither of which guarantee the safety they imply. I take a different approach. Rather than fear randomness, I believe we can make choices to see it for what it is and to let it work for us. The unpredictable is the ground on which creativity occurs.

For example, suppose you are seeking a job as a retail manager. You might bring added value by being fluent in English, Spanish, and French. Being trilingual may not be part of the job description but can be a valuable asset when working with diverse employees and customers who speak Spanish and French. This Value-Added message may tip the scale in your favor. Possibly you are seeking a job as a fifth grade teacher. If you are an expert in computers and computer programming, these skills may not be part of the job description but might be perceived as having high value to an academic institution. If you are an expert electrician, but you are also highly skilled in sales, this added value of contributing to new business development efforts might be the differentiator, the added skill that will help you land a job quickly in tough markets.

In 2001, my co-workers at PayPal and I would often get lunch on Castro Street in Mountain View. We had our pick of restaurants, starting with obvious categories like Indian, sushi, and burgers. There were more options once we settled on a type: North Indian or South Indian, cheaper or fancier, and so on. In contrast to the competitive local restaurant market, PayPal was at that time the only email-based payments company in the world. We employed fewer people than the restaurants on Castro Street did, but our business was much more valuable than all of those restaurants combined. Starting a new South Indian restaurant is a really hard way to make money. If you lose sight of competitive reality and focus on trivial differentiating factors—maybe you think your naan is superior because of your great-grandmother’s recipe—your business is unlikely to survive.

Consumers want the predictable and consistent, with an occasional positive twist or added value thrown in. Psychologists who study happiness (the correct psychological/research term is subjective well-being) often talk about the importance of predictability for safety and security (the caramelized popcorn, if you will), mixed with small increments of variety to offset boredom (the prize). Unfortunately, many companies focus too much on the basic ingredients and not enough on adding that extra something that differentiates them from their competition and builds brand loyalty. Starbucks leaders, however, have made a firm commitment to creating an experience of Surprise and Delight in many areas of their business. Starbucks management seeks ways to implement subjective well-being for customers and staff—which, in turn, has a profound effect on loyalty, community, and profit.

Salespeople fail to attract new customers because beyond being self-focused, they’re long-winded and their message is often confusing. Many salespeople don’t invest the energy to sharpen their story, but instead serve up a pitch that neither differentiates from the competition nor compels the buyer to act.