I heard a radio commercial today, promoting an auto component. Here in the Detroit metro area, every other radio ad is from an auto supplier, bragging about their latest invention. I tune most of them out. However, this one caught my attention. It said that “Commonization leads to a competitive edge.” I’m not kidding. It really did. I wrote it down.
Now, I realize that they’re talking about having a common platform, with the ability to customize the trim and detailing. We studied personalization in the supply chain in grad school (Dell, Nike, etc.). I get it. But, I have to admit that this type of leveling the playing field and making every car and truck look just like it’s cousin, aside from some styling features, only reinforces the perception that all “American-made” autos are basically the same.
I have a secret for the auto industry: commonization does not lead to a competitive edge. It leads to everything being the same, as in being “in common” with each other.
Now, before I continue to pile on the American auto industry, I have to challenge you to think about your own industry. This type of “commonization” happens in all industries, unfortunately, to some degree. It happens through the distribution of “best practices.” It happens when ideas are shared at industry networking events. It happens because firms often strive to copy other industry firms they admire. It almost can’t be avoided. But it sure doesn’t help with differentiation and gaining a competitive edge.
So what’s the solution? How do we gain a competitive edge? The answer is to intentionally NOT be like everyone else in the industry. DON’T copy the moves of your competitors. AVOID looking, smelling, and tasting like every other firm. After all, if everyone is the same, how does your customer decide who to hire? You guessed it: price.
I hear an awful lot of complaining about declining customer loyalty, reduced profit margins, and lower prices. But, at the same time, I see competitors in a race to copy each other, look the same, act the same, and to implement industry standards and best practices. Am I the only person who feels that many firms are simply feeding the fire that they’re complaining about in the first place?
My advice is to be different. Discover your unique advantage; your unique value; your unique brand. Then tell the world about it. Promote it. Shout it from the rooftops. And then protect your brand. Manage it. Enhance its value. This is what will give you the competitive edge.
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Posted by philharwood 
