Continuing our previous discussion of business strategies, we move into understanding product differentiation and how Medtronic utilizes this concept in day-to-day operations.
Barney states product differentiation, as the term indicates, is the strategic impetus of an organization to acquire new or further competitive advantage in the market by increasing customer or end-user interest and likelihood of paying for a variety of goods and services.
Product differentiation for Medtronic is paramount to stay in business. Without product differentiation as a business strategy, Medtronic would have little to no stake in the medical device market. The continued innovation and differentiation strategies push the limits of what was once inconceivable. For Medtronic, survival is aided through customer loyalty to the brand. So the question now becomes how does Medtronic maintain brand loyalty?
Solution: Create more complex customer-centric products which puts Medtronic at the front of the line when physicians are looking for a one stop shop solution to help patients. Furthermore, Medtronic can make sure existing products or products flowing through the pipeline maintain not just a high level of quality but also uniqueness in design and multi-functionality that leads physicians and customers to choose Medtronic over the competition.
Medtronic released a product touted to revolutionize heart monitoring. The product, Reveal LINQ, compared to competition was a heart monitor with a unique feature: it is extremely small. What patient does not want a small heart monitor that can be inserted into the cardiac system?
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