The recent series of Apple commercials on television in the U.S. make this point clear as Windows PC users switch to Apple since they would have to upgrade to Windows 7 anyway. It is humorous and an example of how Apple is now making its nonconformist position now the center of its strategy to go against Microsoft Windows 7. The last strategy of allowing rivals to misinterpret your success is critically important as a defensive strategy, especially for those companies competing in markets dominated by market leaders. Consider how AMD carefully worked through their low-end microprocessor product line as Intel continued to consider what the role of that processor price point would be on the industry. Suzuki America and their launch of the cross-over Sport Utility Vehicle, the Grand Vitara, at below $15,000 against competitors over $20,000, and the fact that Suzuki held sales figures is a case in point. Within a year of the grand Vitara launch Suzuki dominated the cross-over SUV market during the 2006 -- 2007 timeframe. The ability to make competitors misinterpret success is vitally important in more mature industries as well, as can be seen in the consumer packaged goods (CPG) market as well. Snapple was able to accomplish this below the radar screens of Coca-Cola and others and as a result established itself as a major brand based purely on customers' references and support. The generic strategy of differentiation has been used successfully by Snapple in penetrating a mature, highly competitive marketplace in the CPG...

The generic strategy of differentiation is effective when supported by customer loyalty that perpetuates the strength of the brand and its perceived value (Porter, 1985). When competing in mature markets the issue of differentiation is critically important and over time can determine the viability of a new market entrant relative to more established rivals (Porter, 1985).
References

Meena Chavan. (2009). The balanced scorecard: a new challenge. The Journal of Management Development, 28(5), 393-406.

Crainer, S., & Dearlove, D. (2008). The heart of leadership. Business Strategy Review, 19(3), 40-45.

Eriksen, M. (2009). Authentic Leadership: Practical Reflexivity, Self-Awareness, and Self-Authorship. Journal of Management Education, 33(6), 747

Hein, K.. (2009, October). Dial 'L' for Loyalty: Phones Top List of Most-Trusted Brands. Brandweek, 50(37), 4.

Jai Kim, & Caroline Hatcher. (2009). Monitoring and regulating corporate identities using the balanced scorecard. Journal of Communication Management, 13(2), 116-135.

Porter, Michael E.. (1985). Technology and Competitive Advantage. The Journal of Business Strategy, 5(3), 60.

Shelton, R.. (2009). INTEGRATING PRODUCT AND SERVICE INNOVATION. Research Technology Management, 52(3), 38-44.

Shi, G., Shi, Y., Chan, A., & Wang, Y.. (2009). Relationship strength in service industries: A measurement model. International Journal of Market Research,…