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Differentiation Strategies come under the Porter’s Generic Strategies to differentiate the products or services in a way in order to complete successfully. Differentiation is all about differentiating between companies, service and products i.e. setting the companies, service and products apart. In the Differentiation Strategy the brand is being distinguished from the other brands. However, Differentiation Strategy Assignment Help gives us the information that the Differentiation Strategy is actually an approach under which the firm aims to develop and market exclusive products for various customer segments. Cases where the customer target segment is not price-sensitive, customer’s needs are very specific, market is competitive or saturated and the firm has unique resources and capabilities, Differentiation Strategy is appropriate and enable the firm to satisfy the needs in some way which are not so easy to copy. At some point, Differentiation Strategy is not suitable for small companies. Instead, it is much more appropriate for bigger companies or bigger firm. There are two variants on the Differentiation Strategy. Those are given in Differentiation Strategies Assignment Help- shareholder value model and unlimited resources model. The shareholder value model says that a differentiation advantage can be created by the timing of the use of specialized knowledge provided the knowledge must remain unique. A large base of resources are utilized by the unlimited resource model which allows an organization to outlast competitors by involved a differentiation strategy.
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Advantages and Disadvantages of Differentiation Strategy
The Differentiation Strategy Assignment Help helps us to know the advantages of the Differentiation Strategy. They are
• Differentiation Strategy is useful in order to differentiate a product from similar offerings on the market.
• A Differentiation Strategy when aims at the value, it highlights the cost savings and the robustness of products when compared to others.
• A Differentiation Strategy not only allows the business to compete in areas related to price but also enables the company to compete in other fields except price.
• Though the Differentiation Strategy is not so used among the small businesses, yet the small firms can use by focusing it on the quality and the design of their products.
Along with the advantages, the Differentiation Strategy Assignment Help also highlight the disadvantages of the Differentiation Strategy. They are
• The Differentiation Strategy is less or not used by the small companies or say the small companies cannot afford the Differentiation Strategy to market to everybody.
• The Differentiation Strategy however proves costly due to the expenses behind the advertisements in order to appeal to the niche markets.
• The common disadvantage of the Differentiation Strategy is the failure to recognize the original customer. The company must be prepared to change the strategy if the target doesn’t respond the way the company had assumed.
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