A differentiation strategy is one in which a firm's products are perceived by customers to be slightly different from other firms' products in the same industry.

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A differentiation strategy aims to distinguish a company's products or services from its competitors in the mind of the customers. This differentiation can be based on various aspects such as quality, design, features, technology, service, or brand image. By focusing on these unique attributes, the company can create a perceived value that justifies a premium price and generates customer loyalty. Thus, a differentiation strategy requires a deep understanding of customers' needs and preferences, as well as a commitment to innovation and quality improvement.

A Differentiation Strategy Is One in Which a Firm's Products