differentiation strategy

Definition

A strategy employed by businesses to increase the perceived value of their brand or products as a way to entice buyers to choose their products over similar products offered by their competitors. Differentiation can be achieved through competitive pricing, enhancements to functional design or features, distribution timing, expanded distribution channels, distributor location, brand reputation, product customization, and enhanced customer support.

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Increasing the quality of your product when you cannot compete on price can be a viable differentiation strategy for firms with high variable costs.

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Our newly implemented differentiation strategy was working well and customers were choosing our products over the competition's products and we were happy.

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The personal computer market is extremely competitive. The companies that find the most sales success are the ones who develop the best Differentiation Strategy through which their product is made to stand out for the competitors.

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