For the entrepreneur, understanding how to best differentiate a new company may be a source of frustration and confusion. There are primarily 6 ways to differentiate, These include: Product Differentiation – Creating a product with better features, performance or efficacy. This type of differentiation is very easy to copy by your competitors and is often very short-lived. CHAPTER 5 1) What are the pros and cons of in pursuing a broad differentiation strategy? Virgin Airlines employs a two-sided strategy: pricing and service. STRATEGIES The term ‘Strategy’ has been adapted from war and is being increasingly used in business to reflect broad overall objectives and policies of an enterprise. Broad differentiation is a kind of differentiation that range from products to services. Studying the strategies and methods of successful companies can help provide guidance for any company who wishes to take their business to the next level. Although you want your business to excel in all things, it has been proven time and time again that specialization is the key to success. 2. So what have companies done by way of broad differentiation strategy, and what can we learn from them? (QuickMBA, 2010). They have done the trusty old SWOT analysis and listed their strengths and weaknesses. The broad differentiation strategies of other brands. 6.4 Differentiation Firms that compete on uniqueness and target a broad market are following a differentiation strategy. Differentiation Strategies. Here customers across the country were asked to doodle on their Starbucks cups and submit pictures as entries. Types of Strategies – Cost Leadership ,Differentiation , Focus. Copywriting advisors like Copyblogger appeal to a broad audience, making the advice offered, as times, equally broad and generic. Founded in 1837, Tiffany & Co has managed to built a strong brand name that allows them to target a very particular niche target market. Several examples of firms pursuing a differentiation strategy … In this article, we discuss how such industry leaders as Amazon, Apple and 3M, use differentiation strategies to achieve profitability and customer loyalty. Broad differentiation strategy for many companies often relies on strengths. Then they cheerfully accept their strengths as differentiators. The broad differentiation strategy implies that the service or good "offers unique attributes that are valued by customers and that customers perceive to be better than or different from the products of the competition." Give an example/s of a company/companies who have both pros and cons? Differentiation strategy examples … Starbucks Another great example of user-generated content, Starbucks’ White Cup Contest launched in April 2014. Tiffany & Co. Next on our list of differentiation strategy examples is Tiffany & Co. The Middle Finger Project, led by the ambitious Ash Ambirge, serves to make copywriting, freelancing, and content creation an exercise in creativity for women who are looking for their voice. The winning entry would be the template for a new limited edition Starbucks cup. Broad Differentiation Strategy . Differentiation is the principle of setting a company apart based on specific elements of the company. The jewlery company, which you may also know from Audrey Hepburn’s iconic movie “Breakfast at Tiffany’s”, is famous for its stunning hand-crafted and timeless designs. According to Michael Porter , in order to avoid being “stuck in the middle” company should select one strategy out of three generic strategies ( Cost Leadership, Differentiation and Focus) which he had mentioned in his book, Competitive Strategy . Let’s take a look at the differentiation strategies of a number of brands.

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