Differentiation strategies aim at creating competitive advantage not by striving for the lowest possible cost structure, but by maximizing value created for the customer. The rationale behind the strategy is that the surplus of value that has been created will be rewarded in the marketplace by means of a price surplus that is sufficiently large to cover the cost surplus that may have been necessary to create the added value and to bring this value surplus to the attention of the (potential) customer. Within this strategy, typical policies include extending the product range, offering branded goods, highly personalized ‘on-the-spot’ procedures and harvesting economies of scope. Retailers such as Marks & Spencer pursue a differentiation advantage.