So, What's Your Differentiator?
– by Stephen Mahaney

Got one? ...if you don't then you're just another wolf in the pack struggling for a meal among the starving. In case you haven't heard, customers are flocking to the swift and sure. Wal-mart has kicked K-mart's butt. This holiday season it has set its sights on Toy's-R-Us and is dragging Target into the grinder for good measure. How? ...by offering toys at prices below wholesale! (Story) According to analysts, by selling some items below cost the discounter is using toys as a loss leader to woo shoppers to other aisles elsewhere in the store.

That's Wal-mart's differentiator - lowest prices (come now, you didn't really think it was the greeters?)

The point is that unless YOU (your business) has some compelling reason for customers to do business with YOU, instead of your competition, you might not survive, business-wise. Ironically, businesses who do present a compelling differentiator stand to survive, thrive, and even soar above all pre-existing norms set for a given industry or niche – call it the magnified effect of doing things right in what is now (like it or not) a huge global market.

Here's a couple of global, online examples for you to chew on. Although it may be illegal (unfair, blah, blah), U.S. pharmaceutical companies are getting their butts kicked by overseas vendors because customers worldwide are responding to cheaper pill-prices combined with the absence of red tape (i.e., prescriptions). Yes, I know it's probably illegal (I think I already said that) but that doesn't change the fact that international pharmacies have gone global offering pills that sell for $12 in the U.S. for less than $2 – delivered to your door!

Granted, they may or may not be the same quality ...who knows (I don't), but from a purely marketing perspective, who cares – it's the customer's perception that counts the first time they order from you....