3 Rules for Understanding How Value Leads to Better Performance
The first rule is “Better Before Cheaper”: being price competitive is far from irrelevant but when it comes to position in a market, exceptional performance is caused most often by greater non-price value rather than lower price. There are two dimensions of value along which any company can differentiate itself: price value and non-price value. Research reveals that exceptional companies typically focus on non-price value, even if that means they have to charge higher prices. Price-based competition is a legitimate strategy. Competing with better, rather than cheaper is systematically associated with better long-term performance.
