Types of Competitive Advantage
Every company needs a strategy to determine where they want their business to go and a way to get there. Most companies base their strategy on competitive advantage. While there are numerous differentiation strategies that make a company stand out, competitive advantage is determined by cost leadership and differentiation.
One strategy for differentiation is referred to as broad differentiation strategy which is a type of competitive strategy where a company decides to offer unique products or services that set the company apart from their competitors. Another strategy is a focused differentiation strategy which means the company will target a niche of customers with unique and distinctive products or services.
Here are some differentiation strategy examples of how companies set themselves apart based on specific elements of their business. Just keep in mind that differentiation strategy definition is setting a company apart in the eyes of their competitors as you read these examples of differentiated marketing strategy.
ETSY offers crafters a place to sell their products and relies on the diverse nature of products they sell in the craft marketplace. They have both price and product differentiation strategy working for them with mostly low price items with unique products.
What strategy will you use in your business to stand out from the crowd?
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