Do all companies need to differentiate?

In  this post from Gartner, Hank Barnes makes an interesting case.  Do you need to differentiate from your competition?  He contends that in some cases that’s not at all necessary.  Particularly for leading, established vendors.  Those vendors can be ‘good enough’.   He contends if products are ‘good enough’ differences don’t matter and customers will embrace known leaders.  He describes this as neutralizing vs. differentiation.  Do you agree?  The post, and some of the comments, discuss the implications this has for innovation.  Interesting read.