Implementation
In real-world implementations, it is common to also use standard compression techniques (such as Lempel-Ziv) while compressing. This makes sense because LZW already works by referring back to re-used strings. ZDelta is a good example of this, as it is built from ZLib. The algorithm works by referring to common patterns not only in the file to be compressed, but also in a source file. The benefits of this are that even if there are few similarilties between the original and the new file, a good compression ratio is attained.
Read more about this topic: Binary Delta Compression