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Differentiation
A generic strategy to achieve competitive advantage, which requires being unique in an industry along some dimension that is widely valued by buyers.
Implications
The process of distinguishing a product, service, or brand from its competitors by highlighting unique features, benefits, or value propositions, often used to create a competitive advantage and attract specific customer segments.
Example
Example: A luxury watch brand differentiates itself by emphasizing its craftsmanship, heritage, and exclusivity, appealing to affluent customers who value these attributes.
Related Terms
Different from cost leadership, which focuses on being the lowest-cost producer, differentiation focuses on creating unique value that justifies a premium price.
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