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ONEFIRE Blog

Differentiation Challenges in B2B

Posted by ONEFIRE on 8/28/25 9:15 AM  |  3 minute read

IndustrySurvey

Findings from a Survey of MSP and Manufacturing Industry Leaders

 

Introduction

Differentiation is a persistent challenge for B2B organizations competing in saturated markets. To better understand the obstacles leaders face, a survey was distributed to more than 4,000 executives in the managed service provider (MSP) and manufacturing sectors. The responses reveal consistent barriers to market distinction, prospect conversion, and effective communication of value.

 

Market Perception

Leaders report that their organizations are often perceived as interchangeable with competitors, despite long histories of proven delivery. MSPs, in particular, note the difficulty of conveying the depth of their client care, emphasis on security, and productivity-focused solutions. Manufacturers share a similar sentiment, emphasizing the struggle to highlight specialized expertise in industries that appear uniform at first glance.

 

Primary Objections from Prospects

Three dominant objections were identified when prospects decline to move forward:

  1. Price Sensitivity – Buyers default to cost-based comparisons, undervaluing experience and operational maturity.

  2. Perceived Fit – Prospects favor providers positioned as local or highly specialized in their industry.

  3. Risk Misconceptions – Smaller organizations often believe they are not viable targets for cyberattacks, reducing their perceived need for advanced protection.

 

Communication Constraints

Decision-makers allocate limited time to evaluate potential partners. This constraint forces providers to distill complex value propositions into brief, compelling messages. Many leaders find that even strong differentiators—such as decades of industry-specific experience—are difficult to communicate effectively under these conditions.

 

Strategic Gaps

A notable insight from the survey is the lack of a defined, proactive differentiation strategy. Most organizations continue to rely on legacy credibility (e.g., years in business, established client relationships, consistent service delivery) rather than intentional, forward-looking positioning. While these qualities build trust, they are insufficient for standing out in competitive markets.

 

Key Findings

  • Differentiation remains elusive across both MSPs and manufacturers.

  • Buyer objections consistently center on price, geography, and perceived relevance.

  • Limited prospect attention spans intensify the challenge of communicating value.

  • Clear, deliberate differentiation strategies are often absent.

 

Recommendations

Based on the findings, several steps can help B2B organizations strengthen differentiation and market positioning:

Re-Position Beyond Price
Competing on cost is a race to the bottom. Change the conversation. Go beyond what you do and tell prospects how you do it and show them why it's the best option for them.

Demonstrate Industry-Specific Expertise
Tailor communication to demonstrate expertise in the prospect’s sector. Case studies, benchmarks, and sector-specific use cases make value tangible.

Package and Productize Service Offerings
Own a truly unique proven framework and process that your competitors can't offer. Help prospects visualize the difference and understand the value you're bringing to the table.

Build a Formal Differentiation Strategy
Stop relying on years in business or legacy client relationships. Proactively define what sets your company apart today and ensure it's consistently communicated across all touchpoints.

 

Conclusion

The survey highlights a critical gap between how organizations view themselves and how they are perceived by prospects. While leaders are confident in their expertise, reliability, and client commitment, these attributes are not consistently recognized in the marketplace.

To overcome this, B2B organizations must adopt deliberate strategies that clearly articulate their unique capabilities, industry insight, and commitment to client success—transforming differentiation from a challenge into a competitive advantage.

 

Topics: Technology