Brand Distinction as a value creator in The Age of Convergence.

Key Words/Phrases – Meanings

Disruption: Resist the status quo i.e. normal flow of business

Convergence: Businesses gravitating towards offering increasingly similar products and services

Divergence: Deviation from established precedent in order to shake things up with new ideas.

Positive Distinction: Differences that make a brand thrive

Market Entry: A brand’s entrance into the market

Welcome to the “Age of Convergence”

The word convergence has been defined in several ways and used across multiple scenarios. Generally, it refers to a process by which two or more things, ideas, groups, societies, etc. become less different and more similar. Within this context, we refer to convergence as the propensity for brands within unique market segments to increasingly offer similar products & services, deploy wholesale business strategies, systems and curate the same user experience. The phrase “Age of Convergence” recognizes convergence as one of the defining features of today’s business landscape driven primarily by advancements in technology.

—Convergence erodes distinction and therefore has global and local implications.

There are several factors responsible for convergence including increased access to technology hence, lower barriers to market entry, competitive rivalry, imitation, and a loss of innovative spark. These factors, especially technology, have increased the ability of brands to copy or replicate products and services easily. The proliferation of technology has made proprietary knowledge of brands, their products, and competitors readily available to new and established promoters fueling increased similarity in offerings and little to no distinction.

Why Convergence Matters

Distinction is a key driver of brand value. Convergence erodes distinction and therefore has global and local implications. An increased similarity of goods and services devalues the earning potential of brands. People are more willing to pay higher for unique products than they are to pay for those that lack distinctive features. Therefore, any brand looking to compete favorably within its market must review these implications, devise and deploy a strategy that allows it to thrive i.e. capture and retain market share

Competing in the Age of Convergence

How then can a brand retain and promote its distinction in an environment where service offerings grow strikingly similar? The answer we believe is “disruptive divergence”; a strategic and systematic approach to building and retaining brand distinction designed to amplify a brand’s uniqueness, visibility and generate significant value.

—Disruptive divergence enables brands to differentiate their products in a sea of sameness.

Disruptive divergence advocates the use of brand identity, intuitive design, innovation, excellence, and other strategies in creating a brand’s distinction. It aims to magnify a brand’s differences in hope of positioning it as the premier choice within its market. Disruptive divergence enables brands to differentiate their products in a sea of sameness. It can create significant competitive advantages especially in markets where there is stiff competition bordering on similarity of offerings.

As the degree of convergence gradually increases, brands can stay competitive and position themselves to maximize value through disruptive divergence.

In our next article, we suggest 4 proven strategies through which brands may cultivate and retain their distinction through disruptive divergence.

By Lawrence Idiakhoa, Content Director at Afenomenon Cre8ive Space. Lawrence writes from Lagos, Nigeria.

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