Example: Apple — Differentiation Strategy Apple Inc. is an American corporation that designs and manufactures computer hardware, software and other consumer electronics. The Generic Strategies state that competitive advantage can be achieved through either cost leadership, differentiation, or a focused mix of the two. By contrast, the differentiation focus and cost focus strategies are adopted in a narrow market or industry. Some people simply say ‘differentiation‘ with the meaning ‘product differentiation.’ If the company implements it successfully, product differentiation can give a good a competitive advantage. 9 Perfect Brand Examples of Why It Pays to Differentiate. 6 Companies that Cleverly Use Differentiation Strategies & Gain Competitive Advantage. Differentiation advantage Low (price strategies) High (nonprice strategies) ... Dell Computers is a good example of how. Differentiation Strategy Prof. (Dr.) Nitin Zaware Prof. (Dr.) Nitin Zaware 1 2. This type of differentiation may then become experience differentiation. A differentiation strategy is an approach businesses develop by providing customers with something unique, different and distinct from items their competitors may offer in the marketplace. Introduction… Michael Porter is a professor at Harward Business School. The introduction of rubber soles in the footwear industry, now more than 50 years ago, meant that shoes became impermeable, keeping feet warm and dry, which was obviously an enormous advantage. Tiffany & Co. Next on our list of differentiation strategy examples is Tiffany & Co. Differentiation strategy 1. Differentiation strategy leads to the creation of the added value for your customers. The company headquarters is in Cupertino, California, CEO and co-founder is Steve Jobs and the company boasts of 284 retail locations spanning 10 different countries. Thus, the service is differentiated. By applying … differentiation advantages can be b uilt in self-reinforcing pyramids. A firm can also gain competitive advantage by channel differentiation. A differentiation strategy example whereby mobile phones like Samsung and iPhone are expensive and target the well-off individuals while cheaper phones attract price-sensitive consumers. In this case, ‘a large number of customers’ is the focus, and those customers consider the differentiation valuable to them. 2. Example Question on a Learning Styles Inventory: ... Differentiation can be applied to any part of a lesson. Software companies are the best examples of such cost competitive advantages. Table 5.5 Executing a Differentiation Strategy. Differentiation Strategy Examples. Differentiation Advantage – This type can only be achieved by means of offering products or services that are unique and thus, the companies can charge an exclusive price for providing such products or services. ... Apple is a great example of why paying attention to product design and user experience is crucial from the early stages of product development. Choosing a Tag Heuer watch over Titan as the customer prefers a Swiss watchmaker. Safety - An airline has a better reputation for safety than its competitors. Product or service differentiation refers to the ability to provide better benefits than your competitors. The main objective of implementing a differentiation strategy is to increase competitive advantage. Channel Differentiation. A company which innovates and then patents procedures can have a sustainable cost advantage which will help the firm in the market for a really long term. A firm’s success in strategy rests upon how it positions itself in respect to its environment. The two basic types of competitive advantage combined with the scope of activities for which a firm seeks to achieve them, lead to three generic strategies for achieving above average performance in an industry: cost leadership, differentiation, and focus. It is basically just giving students options or the choice of instruction. The jewlery company, which you may also know from Audrey Hepburn’s iconic movie “Breakfast at Tiffany’s”, is famous for its stunning hand-crafted and timeless designs. When prospective customers understand what makes your product different (and how it will solve their problems), they are more likely to be interested in trying it. The advantage here is that there is less competition and, therefore, greater pricing flexibility. Simplicable's Competitive Advantage Model A Competitive Advantage Model is a useful tool for competitive analysis, strategy planning and building business cases. The focus strategy concentrates on a narrow segment and within that segment attempts to achieve either a cost advantage or differentiation. Cost Leadership. Differentiation strategy offers unique features and attributes to appeal its target segment. With this strategy, the objective is to become the lowest-cost producer in the industry. Through his activity positioning framework, Porter prescribed that firms can achieve competitive advantage through three positioning strategies: variety-based, needs-based and access-based. Michael Porter has argued that a firms strengths ultimately fall into one of two headings: cost advantage and differentiation. Here’s an example of a broad differentiator: adopt a very different business model. If successful, product differentiation can create a competitive advantage for the product's seller and ultimately build brand awareness. 40 Examples of Competitive Advantage (part 2) posted by John Spacey, November 18, 2015 21. 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