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Differentiation Strategy

Differentiation is one of Prof. Michael Porter's generic strategic thrusts that emphasizes providing customized and specialized products and services for all segments in an entire market. Examples of companies pursuing a differentiation strategy include: Dr. Pepper with a different taste; Federal Express with superior service; Caterpillar with high spare parts availability; Wal-Mart with value and more for your money; Rolex as a prestige brand; and 3M Corporation with its emphasis on technology leadership and innovation.
Actions to obtain a significant value difference that customers will appreciate and be willing to pay for and which may increase their product/service loyalty.



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