Differentiation is the positioning strategy of producing a product or service of acceptable quality at consistently lower production costs than competitors can,so that the firm can offer the product or service at the lowest price in the industry.

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Differentiation is actually the opposite of offering the lowest price in the industry. It is the positioning strategy of offering a product or service with unique features or attributes that set it apart from competitors, allowing the firm to charge a higher price.

Differentiation Is the Positioning Strategy of Producing a Product or Service