Differentiation Strategy

Differentiation strategy

Differentiation strategy is performing through produce unique products or have differentiated element to satisfy the needs or preferences of customers. This strategy gives competitive advantage to small companies to compete with large companies. Pescinill Pty Ltd may use this strategy to have differentiated products to stand out from competitors.

One example is from Apple. Apple is try to increase the profit for its products through differentiation strategy, which mainly on the unique product design and brand loyalty. IPhone, IPod, IMac and all other products from Apple have strong symbolic image, everyone knows the devices are from Apple. Apple is also use differentiation in their services. Genius bar is a successful example from apple’s customer service. When you need a hardware repair or any problems from software or services, they can help you at the genius bar (Apple, 2015). This is the reason why Apple became a market leader in technology industry and receives so much love from its users.

Another example is from ETSY which is a popular e-commerce website from US.  ETSY has differentiated itself from other ecommerce websites by its focus on unique, handmade or vintage crafts and products (Entrepreneurial Insights, 2014). Through ETSY, customers are available to choose different kinds of craft items from the worldwide sellers, ETSY are dedicated to attract customers by providing ‘virtual craft fair’. Differentiation strategy help ETSY become an ecommerce website with unique features, and stand out from the rest.

Focus strategy

Focus strategy refers to the business activities focused on a particular customer group, a portion of a product line or a narrow market segment. Companies provide a better and effective service to the small group customers comparing to the rest competitors. A focus strategy works well for small but aggressive businesses. It mainly achieved through focus on low cost, good quality, brand recognition or excellent service (Markgraf, 2014).

Starbucks defined itself as the third place between work and home (Starbucks Coffee Company, 2015). The speedy growth success of this company is a mystery in the coffee industry. Starbucks used the generic strategy of focus within its particular target consumer segment, with an emphasis to and in combination with the generic strategy of differentiation (Larson 2008). They aim on a narrow portion of customers that are coffee lovers and willing to pay overpriced coffee. Starbucks also have unique feature in their brand image and reputation, they have high brand popularity and excellent service through this brand name. Therefore, Focus strategy is an important way for companies to implement to reach success.