look at the benefits of a differentiation strategy.

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Unlike the low-cost offensive strategy, differentiation can be pursued by several companies in one market. Unique product features allow two or more companies to focus on their target audience and coexist without being tied to environmental factors.


Firstly, the application of the strategy ensures a justified price increase. You can refer to the unique characteristics of the product, service or find other ways. Secondly, if the product is really special, useful and high-quality, then this will increase customer loyalty and enhance the brand's reputation.

However, such a strategy also has its vulnerabilities. For example, increased bosnia and herzegovina phone number list costs for creating unique products, a limited target audience, and the risk that competitors can copy the technology, develop and make a better product.


Finally, we will give an example of a business that has chosen broad differentiation - Dyson. The company produces household appliances: vacuum cleaners, fans and, of course, hair dryers. All of them are distinguished by a unique design, advanced technologies, high quality. In addition, a positive reputation has been built around the brand. And people are ready to buy their products at inflated prices.

Focusing
Focusing is the third type of strategy proposed by Porter. It involves a firm concentrating its efforts on one specific market segment or a very narrow group of consumers.