Question:
What is the differentiation strategy?
Author: Hjalmer PedersenAnswer:
Differentiation strategy involves providing uniqueness that is sufficiently valued by customers to allow a price premium Key drivers of differentiation are: • Product and service attributes: providing better or unique features or options or locations etc. • Customer relationships: providing better or unique customer service and responsiveness; or customisation • Reputation: providing better or unique image and prestige • Complements: building on unique linkages with other products/services (Apple and iTunes). It is a broad target / differentiation strategy (See pic)
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