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Differentiation Strategy
A strategy where a company seeks to offer unique products or services that are valued by customers, distinguishing itself from competitors.
Implications
A business strategy that focuses on creating products or services that offer unique features or superior value compared to competitors, often allowing a company to charge premium prices and build brand loyalty.
Example
Example: A technology company adopts a differentiation strategy by developing innovative features in its smartphones that competitors do not offer, such as advanced camera technology and unique design elements.
Related Terms
Different from a focus strategy, which targets a specific niche market, differentiation can apply to a broad or niche market but is centered on unique value creation.
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