Differentiation

Differentiation in business-level strategy refers to a company's approach to making its products or services distinct from those of competitors. By offering unique features, superior quality, or exceptional customer service, a business aims to attract customers who are willing to pay a premium. This strategy helps firms create a competitive advantage, as their offerings stand out in the market. Successful differentiation can build brand loyalty and reduce price sensitivity, allowing companies to maintain higher profit margins while appealing to specific customer desires and needs.