Differentiation
A firm practicing a differentiation strategy is producing a product that is unique and valued by customers (Porter, 1985). Often the firm can charge a premium price because of the special features or high quality that the product possesses. Premium pricing is essential because of the associated costs of providing a unique product. Additional costs could include high levels of customer service, extensive training for staff, and additional advertising.
Organizations that employ a differentiation strategy need to preserve the uniqueness of their offerings to fend off competitors. An exclusive brand will tightly control their image in order to maintain their market position.
Example of differentiation
Organizations that employ a differentiation strategy need to preserve the uniqueness of their offerings to fend off competitors. An exclusive brand will tightly control their image in order to maintain their market position.
Example of differentiation