Differentiation vs. Distinction

There are two pillars that make up a competitive advantage.

• The well-known pillar is differentiation.

• The lesser-known pillar is distinction.

Most people forget about distinction and use differentiation as a catch-all. But it’s important that we understand them both.

Let’s break ‘em down:

Differentiation

Differentiation is based on a product, service, or brand. So think of things like unique features, outstanding customer service, or memorable logos. Here are a few examples:

• Product: 

  • Airbnb disrupted the hospitality industry with a platform that allows folks to rent out homes or spare rooms.

  • Netflix pioneered the concept of subscription-based streaming.

  • Tesla manufactured the first long-range, high-performance electric vehicles. They also invested in a proprietary Supercharger network so their customers could access fast-charging infrastructure.

• Service: Zappos made headlines when one of their employees had a customer-service call that lasted 10 hours and 43 minutes. They knew that people could buy shoes anywhere, but they would become loyal to Zappos if the service went the extra mile.

• Brand: Burberry updated the logo it had been using since 2018. The old design was stuck in the sea of sameness alongside other luxury brands. But now you can’t help but notice it. Check it out below.

Distinction

Distinction is based on the reputation or identity of a business within its industry. So things like a company’s vision, mission, and leadership can all contribute to distinction.

A great example of this is Salesforce’s commercial with Matthew McConaughey, “The New Frontier.”

While other tech companies like Meta and Amazon were obsessing over outer space, Salesforce made it known that they were investing in Earth.

These are just a few examples. But remember, both differentiation and distinction are essential for businesses to stand out in competitive markets.

💚Andy