Question

Give opinion:

Differentiation is a strategy where firms strive to gain superior profits by producing products or services that are different from their competitors. In other words, it involves setting the company apart from its competitors through higher quality products. Differentiation involves being perceived by the market as holding relatively higher value than the competitors (Douglas, 2012). Companies applying the differentiation strategy must have a good understanding of customer preferences and needs. They must be driven to continuously innovate to help address the needs and wants of the customers. It must also build its brand to maintain its visibility and position. A good example of a business popularly known for the differentiation strategy is Apple Inc. The company's high level of innovation in the production, marketing, and sale of its products and services has ensured that they provide high quality and exceptional service delivery in the market. Apple products, such as the iPhone are highly differentiated from the market.

Answer 1

Differentiation is imprtant for innovatiin.in monopolistic competition market,differentiation is important to increase the profit of the company and to develop the company to a higher level.

There is lot of competition in the market and because of that companies need to differentiate their products on the basis of consumers taste and preference.for example if there is a smart phone company,then there are other smart phone companies also.it means there are substitutes for certain products.many companies manufacture smartphone and therefore consumer may buy the smartphone from A company or from B company.

For consumer to buy smartphone,certain features are paid attention.these features are color,design,technology etc.all these features can be differentiated and advertised for the smartphone to sell on a large scale.

Apple inc had applied innovation and they differentiated their product by innovating and iphone was manufactured which became popular because of its design and technology that was different from other smartphones.

Today apple inc has developed worldwide because of the differentiation of product and innovation.advertising made it more popular because consumers came to know about the differentiated and innovative features of apple inc.