Explain differentiation strategy as one of the generic strategies by Michael Porter. What are the major bases of differentiation? Also outline the…

(b) Differentiation strategy focuses on offering unique products or services to a broad market, allowing firms to stand out from competitors and charge premium prices. Uniqueness can stem from design, features, technology or service. Major Bases of Differentiation include: Product: Innovative or new products that cater to customer needs can give a competitive edge. Though expensive in terms of R&D and marketing, they attract customers. Pricing: Pricing can be used as a differentiator—either through low prices or premium pricing backed by product superiority. Organisation: Organisational advantages like brand strength, location or customer loyalty can be used for differentiation. Strategies to Achieve Differentiation: To achieve differentiation, a firm may adopt the following strategies: Offer utility to customers and match products with their tastes and preferences.Elevate product performance.Provide high-quality products/services to ensure buyer satisfaction.Engage in rapid product innovation to meet changing demands.Enhance brand image and brand value.Fix product prices considering product uniqueness and customers' buying capacity.