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


MBA Brief offers accurate and concise definitions of MBA concepts, frameworks, methods and models.

We love to keep things really short, but provide links to learn more about your subject and to similar concepts.

© 2023 MBA Brief - Last updated: 5-2-2023  -  Privacy   |   Terms