Porter's Generic Strategies - Differentiation
A differentiation strategy calls for the development of a product or service that offers unique attributes that are valued by customers and that customers perceive to be better than or different from the products of the competition.
The value added by the uniqueness of the product may allow the firm to charge a premium price for it.
The firm hopes that the higher price will more than cover the extra costs incurred in offering the unique product. Ways in which differentiation can be achieved include:
- Better quality product
- Better customer service
- Better brand image
- Different features from the competition
- Better after-sales service.
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