A differentiation strategy allows companies to communicate the unique features of their products and create a niche for the product. • Note, however, that a focus strategy means achieving either a low cost advantage or differentiation in a narrow part of the market. 1.2.3 Focus Porter initially presented focus as one of the three generic strategies, but later identified focus as a moderator of the two strategies. strategy. In the case of focus differentiation, one advantage is that very high prices can be charged. The goal is to produce goods or services at the lowest possible cost by organizing every potential resource around the current production methods. There could be small businesses or involved in a single business or a large, complex and diversified conglomerate with several different businesses. Examples of the successful use of a differentiation strategy are Hero Honda, Asian Paints, HLL, Nike athletic shoes, Apple Computer, and Mercedes-Benz automobiles. Differentiation strategy 1. Differentiation can be thought of as serving two broad goals. Product differentiation means that your product has one or more distinct attributes that separate it from competitors. Cost leadership styles focus on resource organization. Moreover, successful differentiation strategy of a firm may attract competitors to enter the company's market segment and copy the differentiated product (Lynch, 2003). Differentiation strategies have strengths and weaknesses. Then, by achieving the lowest possible cost, the leader can place their team or organization into a position where the lowest price in the market is charged for needed goods or services. Indeed, these firms often price their wares far above what is charged by firms following a differentiation strategy (Figure 5.10 Figure 5.10 Executing a Focus Strategy ). The first is to maximize attainment of the grade-level general curriculum standards (represented in Figure 1 as a sphere) for all students. This strategic change is vital, because it helps to retain or gain competitive advantage in an altered business environment. Strategic change needs planning as a lot of issues arise and need to be solved. Companies pursue various marketing strategies to attract customers to them rather than to competitors. • Whereas low cost and differentiation are aimed at achieving their objectives industry wide, the focus or niche strategy is built on serving a particular target (customer, product, or location) very well. According to Anderson (2007), differentiating the process within a lesson refers to “how PDF | Market orientation has always been a critical factor of creating useful business knowledge. Vertical differentiation refers to products that fall on a scale from best to worst, highest to lowest, impacting the overall functionality of the item. Product differentiation occurs on two clear levels: vertical and horizontal. Advantages and Disadvantages of Product Differentiation. 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