Question

Provide an example of product differentiation using any industry you want (e.g., fast food, shoes, clothing, etc.)

Answer 1

Production differentiation is a method by which a company creates a competitive advantage over its competitors. This is possible usually in a market where the consumers are willing to pay higher for differential quality, location, type or any other such factors.

An example for product differentiation in fast food industry can be Domino's Pizza which is the worlds leading pizza company having thousands of owned & franchised outlets. Its having presence in several countries and provides competitive advantage of a good supply chain, low cost outlets and fast customer service. It delivers pizza in less than 30 minutes and claims to return money if it takes a longer time than that. So it creates a competitive advantage over pizza industry in comparison to pizza hut and other competitors in the market.

Another example can be coca cola, being a world leading soft drink company having a competitive advantage over its competitors in terms of presence all over the world, having a good customer relationship, a good supply chain and it has a brand value in soft drinks market. It provides a competitive edge in comparison to its competitors like Pepsi and other soft drink brands.