With a differentiation strategy, a firm seeks to identify itself as unique in its industry in an area that is important to buyers.

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A differentiation strategy involves a firm differentiating itself from competitors by offering a unique product or service that is valued by customers. This can be done through various means such as offering higher quality, better customer service, unique features or design, or superior technology. By standing out in a specific area that is important to buyers, the company can gain a competitive advantage and increase customer loyalty.

With a Differentiation Strategy, a Firm Seeks to Identify Itself