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» Economics » Management economics » Topics begins with D » Differentiation strategy

Page modified: Tuesday, July 12, 2011 22:04:09

By differentiation strategy one understands the strategy of an enterprise in the management economics to segment the market and then purposefully at the needs of individual customer groups adjust themselves, in order to attain advantages in such a way opposite the competitors. The differentiation is one of the three classical competition strategies. Besides still the niche strategy and the strategy the cost leader shank exist.

An enterprise can obtain successes in the market, if it knows and thus measure can the price elasticity of the demand exactly, which its customer groups particularly sensitively to price adjustments or to reductions with the product quality react. A successful differentiation strategy presupposes therefore exact knowledge of the market and the customer behavior, which an enterprise can usually win by market study. Also communication with the customers plays a large role, in order to arrange for each customer group "it" product as well as possible.

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