With the differentiation strategy, on the other hand, the unique attributes or perceptions of unique and characteristics of a firm's product other than cost provide value to customers.
The firm pursuing differentiation seeks to be unique in its industry along some dimension that is valued by customers, which means investing in product R&D and marketing(Porter, 1980).
It is the ability to sell its differentiated product at a price that exceeds what was spent to create it that allows the firm to outperform its rivals and carn above-average returns.
A product can be differentiated in various ways.
Unusual features, responsive customer service, rapid product innovations and technological leadership, perceived prestige and status, different tastes, and engineering design and performance are examples of approaches to differentiation(Porter, 1980).
Rather than cost reduction, a firm using the differentiation needs to on investing in and developing such things that are distinguishable and customers will perceive overall, the essential innovativeness, in strategy implementation is to develop and maintain 2001;
Dess and creativeness, organizational learning within a firm