This strategy generally is a marketing strategy in which a business or organization utilizes in the heed of distinguishing its product from other similar offerings within the market. The difference could be posed by a concrete offering such as better service, performance, power, and speed. It could also be borne out of the quality of the product offering, such as being more stylish or trendier in contrast to that of competitors. Below is how this strategy is beneficial to an organization.
Utilization of this strategy has the effect of creating value to the product offering of an organization. In this view, potential consumers or consumers will attach a perceived value to the offering. Owing to this, it is more likely that the organization will attract a huge customer base in contrast to competitor products. In the same regard, this could oversee more sales, and thereof profitability of the organization, a factor that is beneficial to the organization.
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The differentiation strategy can also allow an organization to gain an advantage in other areas apart from the increased sale. An example is an organization that may differentiate its products from others in terms of quality and taste. An example of such an organization is Tesla. Generally, this car manufacturer is different from the others from Elon Musk’s strategy of sending one of the cars to planet Mars. Owing to this, Musk created an image that is indelible for the brand, a factor that sets it apart from other manufacturers. Therefore, it is clear that the differentiation strategy has the benefit of overseeing an organization gains a competitive advantage from others in the market without a decrease in product prices.
