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The Use of Differentiation in Establishing a Market Presence

Discuss in scholarly detail concepts behind differentiation and evaluate a business's differentiation opportunities using skills, resources and organizational requirements. In addition and expanding on these concepts, what potential risks must managers take into account as they evaluate differentiation based advantages?

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Dear Student,
The concept of business differentiation is the result of efforts to make a product, brand, or service stand out by providing a unique value to customers in relation to its competitors. Differentiation is what allows companies to market on the unique concept of their brand, with the premise, the sharper the differentiation, the greater your advantage. For example, a company called Tetra Pak which sold over 150 billion packages in 170 markets around the world developed a system of carton packages that extended the shelf life of products, eliminating the need for refrigeration. Because they package using squares and pyramids, they stack more efficiently in trucks during shipping and on shelves than other ...

Solution Summary

This solution provides an overview of how organizations can use differentiation to establish a brand strategy, add value to their product or service, and evaluate risk regarding differentiation.