One of the best ways to gain a good position in the market is to implement a differentiation strategy that allows you to add value to your offer and stand out from your competitors. If you want to achieve this type of advantage, we invite you to read this article in which we will deal with what the differentiation strategy is, highlighting its importance with examples and practical advice to implement it. Opportunities don’t come, they are created. Do not wait more. START FOR FREE Differentiation strategy: definition and importance Differentiation as a competitive strategy To understand what a differentiation strategy is, we would like to refer briefly to Michael Porter ‘s theory of competitive advantage .
According to this renowned Harvard professor, there are three types of generic strategies that companies can use to be more competitive in the market. These strategies are the following: Cost Leadership Strategy differentiation Oman whatsapp number list strategy approach strategy In order for you to better understand what each of these strategies consists of, in the following image we offer a small explanation with some examples: marketing differentiation Bearing in mind that differentiation is one of the alternatives used by companies to compete in the market, it is time to thoroughly explore what a differentiation strategy is.
What Is Differentiation Strategy
A differentiation strategy is a business approach that seeks to add value to the products and services. Offer in order to achieve a competitive advantage in the market. With this approach, companies seek to outperform their competitors and consolidate their processes to attract and retain customers. What is differentiation strategy Considering the definition that we have just given. It is important to make a couple of clarifications regarding the idea of adding value . First of all, most differentiation strategies tend to focus on product differentiation.
Such differentiation can be implement from various angles. Here are some examples: Products with a unique flavor (Doritos, Red Bull) Feature-rich products (Microsoft Office, iPhone) Products with unique design engineering (BMW, Mercedes Benz) Products with high social responsibility (Lush, Ben & Jerry’s) In addition to the above, it is important to say that there are many ways to add value that are not necessarily directly related to the products offered. For example, your added value may be the customer service you provide or the flexibility of your refund policy. In this sense, the differentiation strategy goes far beyond offering a product with unique characteristics.
What a Differentiation Strategy
However, Strategic differentiation is not just about a brand or your product offering. What you have written in your company’s mission, vision and values. However, True strategic differentiation lives in what you do for your customers every day to serve them better than your competitors can. Benefits of differentiation strategies As we said before, differentiation strategies give companies. However, A competitive advantage in the market. Here are four of the biggest benefits that can be obtain with this type of advantage. Product differentiation As you can see, the benefits offered by differentiation strategies are enormous. Now that we know what a differentiation strategy is and what benefits it provides. It’s time to look at some examples of differentiation strategies.