Question: An essential factor in successfully using a differentiation strategy is in deciding what customers find valuable. Typically, buyers find the following four aspects valuable:
• A product or service that lowers the buyer's costs, such as more fuel-efficient cars in a high-priced gasoline world
• Increased product performance (longer battery life for iPads, laptops, or cell phones)
• A product or service that increases satisfaction in noneconomic or intangible ways (the prestige of a Rolex watch or a Louis Vuitton bag)
• Enhanced product or service, which a company provides by exploiting competencies rivals do not possess (Nintendo offers extensive Wii selections due to its deep pool of developers and internal software development operations)
Considering this, explore BMW's website (BMW Group). Then, post a response to the following:
• Identify at least three ways in which the company seeks to differentiate itself from rival automakers.
• Is there reason to believe that BMW's differentiation strategy has been successful in producing a competitive advantage? Why or why not?
• Suggest at least one alternative strategy that may help an automaker like BMW gain a competitive advantage.