Research On Products Differentiation And Competitive Advantage

The product is a key element in marketing. Products competition is a direct and important competitive method. Products can reflect the value that customers gain, so products competition shows not only the behavior in substitutes and in competitive enterprises for market share, but also a game between products providers and customers in fact. And the latter is the most essential competition. So products competition is an important way to obtain competitive advantage.Meanwhile, according to international trade, products differentiation is foundation and reason of intra-industry trade. Now intra-industry trade is increasing its proportion in international trade, affecting creation of national competitive advantage. So we must study products problems in intra-industry trade.The paper has analyzed the basic theories of products differentiation and competitive advantage, pointed out that products differentiation has the important meaning to create competitive advantage for enterprises and even countries. The paper has put forward the products differentiation strategies on basis of a model, and brought out some suggestion to create competitive advantage in foreign trade of our country.The first, second, and third parts focus mainly on the theory analysis. The first part brings out the problem, and introduces the related study in inland and abroad. The second part explains the basic concepts of product and competitive advantage, and pointes out that products differentiation can create competitive advantage. The third part analyzes the relationship between the two, from the enterprises competition to the industry competition. The paper also sets up the theory model to explain the products differentiation in intra-industry trade.The forth and fifth parts apply the above theory analysis to put forward the strategies and suggestion. The forth part establishes a model of differentiation in product competition, including idea, attribute, service and brand. The brand differentiation is the most important factor among these four. Then this part elaborates the strategies of differentiation in product competition continued from the preceding paragraph. The fifth part brings out some suggestion to create competitive advantage in foreign trade of our country. The suggestion mainly focuses on how to create product differentiation advantage and develop intra-industry, for helping our industries achieve competitive advantage.The last part summarizes the whole paper.