Commerial drones seems to be an emerging market with promising future.DJI,a chinese commerial drone-producing company,is leading the trend.

Commerial drones market is not a market leading by the price factor. Customers are willing to pay premium price for a drone with better performance.How does DJI apply differentiation strategy? DJI keeps focusing on the product uniqueness from the launch stage of the company. Collecting information from customer’s feedbacks regularly, DJI releases new products every year.

Why does DJI manage to have low days of inventory which serves as a competitive advantage? DJI ‘s governance structure creates a loose internal innovation environment for junior employees. Once they have new ideas, they can report to the vice presidents directly and get funds to improve products.Moreover, the company have a high tolerance of failure, which is rare in large companies.

However, DJI is faced with fierce competition because of its differentiation strategy. Commerial drones market is a big cake and everyone want to have a taste of it. From my perspective, DJI should make most use of its current technology advance and large market share to defeat its competitors at home and abroad.

Article from:<http://www.economist.com/news/business/21647981-chinese-firm-has-taken-lead-promising-market-up>

<http://www.quickmba.com/strategy/generic.shtml>

<https://hbr.org/2013/06/transient-advantage>

Image from：

<http://blogs-images.forbes.com/frankbi/files/2015/04/Phantom-3-3-e1428477888137-1940×1089.jpg>