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Differentiation: Companies enterprise this strategy should prove to the client that they are completely different (and better) than the competition. A differentiation enterprise technique is much less concerned with value. Your company can command greater prices for services or products as a result of they stand out ultimately; they are price the additional cash. Your long-time period technique is to cut prices in the areas that do not contribute to your differentiation, so you possibly can stay cost competitive. Starbucks, for instance, prices extra for its espresso than Dunkin’ Donuts. But it surely differentiates itself by specializing in excessive-quality merchandise and sustainability, and by cultivating a model image because the coffee of choice for the busy skilled (whereas ‘America runs on Dunkin would not have that very same exclusivity).
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