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Differentiated segmentation strategy

Is it a good idea for a small company to adopt a differentiated segmentation strategy? Explain. Point out the benefits as well as the dangers of this approach. Does it fit every industry, or would it be better in certain domains and less effective in others?

Please include references

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Strategy provides long term direction to the organization. It helps the organization in achieving the competitive advantage to the organization. It also tells about the organization about its market, values and the way to handle the resources in order to meet the objectives of the organization. As per tutor2u.net "Strategy is the direction and scope of an organization over the long-term: which achieves advantage for the organization through its configuration of resources within a challenging environment, to meet the needs of markets and to fulfill stakeholder expectations".
http://tutor2u.net/business/strategy/what_is_strategy.htm.

In other words, strategy is about:
"* Where is the business trying to get to in the long-term (direction)
* Which markets should a business compete in and what kind of activities are involved in such markets? (markets; scope)
* How can the business perform better than the competition in those markets? (advantage?)
* What resources (skills, assets, finance, ...

Solution Summary

Solution assists in explaining differentiated segmentation strategy

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