Practical sheet | REF: FIC1004 V1

Business models: the different forms of differentiation

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Publication date: August 10, 2024 | Lire en français

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2. Identify the reference offer in a segment

The second step is to identify the reference offer in a given market segment.

This corresponds to the offer usually requested by the majority of customers. Of course, we need to define the segment to which this definition of reference offer will apply.

Continuation of the air transport example

The benchmark offer in the France segment is Air France's prerogative. All the other players who have tried on a large scale have failed, Air France having succeeded in avoiding the presence of a major frontal competitor. Only a few niche offers remain, such as Easyjet. If we now look at the North Atlantic segment, the benchmark offer is shared between several European and American airlines, which are in fact very similar in terms of the value they offer their customers. Clearly, for Air France, the competitive...

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Identify the reference offer in a segment