Malaysia is an interesting place. The Truly Asia campaign is a positioning strategy they have used for a long time. It signals the country’s features of racial diversity and tolerance. Much of that image was questioned given the high profile case of Kartika Sari Dewi Shukarno who was tried under Muslim sharia law for drinking beer in public some years ago. Found guilty, she was initially sentenced to caning as a punishment. The idea that Malaysia was ‘truly Asia’ has now been shown in the light of day to be a decent image but with little substance to back it up.
This approach to marketing and differentiation is one that is often undertaken by organizations. They develop nice web sites, glossy brochures, and produce high end reports for their customers but fail to back it up with the technical and relational quality that customers value. The truly Asia campaign is typical of a ‘product’ that is based around image but has little substance. Differentiation is a complex mix of firm attributes (such as culture, services, reputation) that is not achieved easily. Most firms are pretty good at creating an image but with little substance. This is why:
- Don’t call back customers for days
- Speak in their own language and forget customer is not a technical person
- Individual professionals don’t relate well on a personal level
- Firms are not responsive or reliable
- Firms that are unable to deliver the value they promise
- Fail to understand their customers industries and unmet needs
- A culture of mistrust that pervades the firm
- Fail to innovate and cast of archaic practices such as yearly budgeting
- Espoused values which are different to values in use
This is not an exhaustive list but gives a pretty good idea of the difference between an image that has no substance and a firm that truly values customer needs and is willing to invest in a culture that works towards delivering the value customers seek. This type of culture is a great source of differentiation and competitive advantage because it is unique and very hard to copy. Superior business models that are made up of the processes, systems, and human capital of the firm are ones that are sustainable. Firms that can create this type of differentiation will always out perform their peers, and more importantly, meet the needs of multiple stakeholders. In today’s environment, making execs happy with their take home pay is woefully inadequate in a market that demands excellence on many fronts. Dissatisfied people, unhappy support staff, and neglected suppliers create a vicious cycle of negativity that will eventually impact a firm’s customers. It may take years to notice in many cases but when it does hit you, the change can be hard to reverse. Employee engagement has a massive impact on firm performance and the delivery of customer value. To achieve a high level of customer value, firms must take into account all their stakeholders and ensure image matches the reality.
Differentiation does not come easily but building image above all else is like building a house of cards, it looks good for a while but the foundation is shaky, when it does come crashing down, it is quick and painful and very hard to rebuild.
Strategy & Competitiveness 