Levels of Product Differentiation in the Global Market

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The book discusses the differentiation among the product offers of companies working in the global markets, as well as the strategies which they use and could use in that respect. The main idea of the paper is that Jack Trout’s principle “differentiate or die” has died.
The book attempts to answer the questions: Is striving for differentiation in everything and at any cost a successful strategy? Why do more and more companies join in strategic groups and establish product categories under which they develop together, differentiating themselves from the rest?
The author proposes an additional 6th product level denoting the correspondence of the company’s product strategy to a specific strategic group. The author uses the criteria set by Michael Porter regarding strategic groups. The 6th product level is the same for all companies in this strategic group. In this way they standardize their products and reduce the possibilities for differentiation in order to participate in the strategic group. They sacrifice differentiation for the sake of being accepted as part of a specific strategic group (product category).

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