If you have to compete on price, nothing seriously differentiates you from your competitors. The result of price-based, internet driven competition is inevitable competitive convergence. The speed with which information is diffused and the efficiency of the global economy makes it almost impossible to consistently be the cheapest. And even if you can be, what does that do to your margins? Consider today's WSJ article http://on.wsj.com/1em9jDU. There has to be a better way.
Strategic differentiation that truly distinguishes your company and it's products and services from competitors anywhere needs to come from a place much deeper than competitor analysis and its resulting product innovation, or from efficiency drives to cut costs. Differentiation needs to come from a place so deep in the "soul" of your company, it's most authentic essence, that no competitor can copy it, because no competitor has what makes you unique. Discovering this essence and using as a tool for strategic innovation and differentiation is the strategy work of the future. It is deeper than any strategy work corporations have ever been required to do in the past, but the good news is that it's quicker and it's results more enduring.