Differentiation Strategy: It is the ability to provide unique and superior value to the buyer in terms of product quality, special features or after-sale service. It is a competitive strategy based on providing buyers with something special or unique that makes the firm’s product or service distinctive. The customers are willing to pay a higher price for a product that is distinct in some special way. Superior value is created because the product is of higher quality and technically superior which builds competitive advantage by making customers more loyal and less-price sensitive to a given firm’s product or service
Eg: Mercedes and BMW have successfully pursued differentiation strategies.
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