Essential had neither of these approaches.
[1] https://www.amazon.com/Different-Escaping-Competitive-Youngm... [2] https://www.amazon.com/Blue-Ocean-Strategy-Expanded-Uncontes...
But my overarching belief about product design: - build stuff you are passionate about because you use it - listen to customers, but don't do what they say
The reason that products all start to look the same is that customer's only experience of 'better' is a competitors product. That's why you have Audi's advertising about their safety record, and Volkswagon's advertising about their performance features.
A great read on this topic is Youngme Moon's book different: http://www.amazon.com/Different-Escaping-Competitive-Youngme...
http://www.amazon.com/Different-Escaping-Competitive-Youngme...
One excellent marketing book I recently read is Different: Escaping the Competitive Herd by Youngme Moon (no ref link: http://www.amazon.com/Different-Escaping-Competitive-Youngme...). She believes that going tit-for-tat on adding features and augmentations is a losing game that results in every competitor looking like one another. Instead, you should find your strength, and focus on that while resisting to focus on where your product falls short. The book is also very... poetic. She's quite a quotable writer. Good stuff.
One case that comes to mind is Ikea with this DIY approach. Is it the most convenient way to buy furniture? Not really given the work you need to do. Prof Moon argues that this paradoxically creates a stickiness to the brand because you have invested something (time and effort).
Another one is the "In-n-out" burger joint(Forgive me if I have gotten the name wrong). Apparently, it takes a full 15-20 minutes to get a burger here but it is thriving in-spite of this difficulty because people know they're not getting some frozen processed food.
[1]https://www.amazon.in/Different-Escaping-Competitive-Youngme...