Differentiation

Definition: Differentiation is one of the 3 generic strategies that can provide a competitive advantage according to Michael Porter.
In a D strategy, a firm seeks to be unique in its industry along some dimensions that are widely appreciated by buyers.
A differentiator can not ignore its cost position. In all areas that do not affect its D it should try to decrease cost; in the D area the costs should at least be lower than the price premium it receives from the buyers.

More on differentiation.
More on competition: Competition Levels, Competitive Advantage, Competitive Intelligence, Cost Leadership, Curveball Strategy, more...

MBA Brief offers brief, yet very accurate definitions of MBA concepts, frameworks, methods and models. We keep it short and provide some links in case you'd like to learn more around a subject.