Differentiation Strategy for Sustainable Business Operations

This report discusses the suitability, feasibility, and acceptability of differentiation strategy for sustainable business operations. It explains how differentiation strategy helps companies to desensitize prices and focus on customer values. The report also highlights the benefits and risks of differentiation strategy with examples from companies like Samsung and Apple.

Running Head: Strategy 1
Strategic Choice

Strategy 2
Contents
Strategy selection.............................................................................................................................3
Differentiation strategy................................................................................................................3
Suitability.........................................................................................................................................3
Feasibility........................................................................................................................................4
Acceptability....................................................................................................................................4
References........................................................................................................................................5

Strategy 3
Strategy selection
Due to the environmental changes, organizations need to change their business strategies
to adapt the change in the environment to stay competitive in the market. Strategic choice and
evaluation is important for the companies to operate the business successfully in the market. This
report focuses on a generic strategy which is effective for the sustainable business operations.
For the discussion, one of the generic strategies, differentiation strategy is selected (Crossan,
2011).
Differentiation strategy
Differentiating goods and services are helpful in satisfying the needs of the customers by
the sustainable competitive advantage. Differentiation strategy is helpful for the companies to
desensitize the prices and focus on the values for the customers. The differentiation strategy
requires segmenting the market based on needs of the target customers.
Differentiation strategy is focused on the development of the products and services that
provides unique attributes which are valued by the customers. By the differentiation strategy,
customers always seek for the different product from the competitors. Companies are trying to
provide uniqueness to the customers while providing products and services to them. The
differentiation strategy includes achieving competitive advantage by pinpointing the
characteristics of product or service that is perceived valuable by the customers. Along with this,
differentiation strategy is helpful in positioning the company to meet the demands of the
customers to deal with the competition (Kaplan & Norton, 2006). Differentiation provides
strength the company against competitors and competitive rivalry due to brand loyalty by the
customers. Further, it increases margins which avoid low-cost position. Differentiation can also
provide entry barriers for the new entrants in the market so that customer loyalty and product or
services uniqueness can be enhanced. The companies have differentiated themselves to get
customer loyalty for the better position in the market. The selected strategy is better than others
in terms of suitability, feasibility and acceptability (Gruca & Rego, 2009).

Strategy 4
Suitability
The differentiation strategy is suitable and compatible for the business operations and the
expected external environment. The differentiation strategy is perceived to be suitable within the
political, social, legal and environmental aspects of the company in the market. Along with this,
customers and demand in the market also play an important role in the suitability analysis of the
strategy. In case of suitability of strategy, differentiation strategy is helpful for the company to
identify the opportunities in the market and deal with the threats in the environment (Graham,
2008). Differentiation strategy is helpful in capitalizing the strength and core competences of the
company. It is also congruent with the existing culture and alignment with broader political,
environment and social context of the company. In terms of suitability factor, differentiation
strategy is suitable for the company in managing external environment.
Feasibility
Feasibility focuses on the resources to pursue the strategic choice. Feasibility analysis
includes the internal capabilities of the company. Differentiation strategies for the companies are
feasible to implement in the business operations. In the market, differentiation strategies are
helpful to focus the customers, and material focus on the suppliers. This enhances the
relationship with the suppliers and customers by identifying their needs and requirements.
Evaluating strategic options in terms of feasibility means to verify the capability of the company
to deliver the strategy (Payne & Holt, 2008). This ability can be assessed based on the core
competencies and resources of the company. For instance, Samsung has invested huge amount of
money and resources to build the image, innovative technology, and brand value and competition
position in all over the world. Differentiation strategy is feasible for the company as the
company is able to improve its abilities of reducing manufacturing costs and providing cheaper
products with the desired quality (Braun & Latham, 2014).
Acceptability
Acceptability mainly focuses on the performance results of the selected strategy in the
business. Acceptability of differentiation strategy can be analyzed based on the risk and return of
the company. Risks are evident of the business. No business can be operated without the element
of risk. So, it is very important to take into account of risk factors while planning and

Strategy 5
implementing the differentiation strategy in the business. While focusing on the product
development and market development options, various internal and external risk factors should
be taken into account. For instance, in the company Apple, differentiation is one of the best
strategies to be implemented. Based on the situational analyses it is observed that this strategy is
the finest strategy for Apple to expand the business internationally (Ferrell & Hartline, 2008).
Apple can adopt market development strategy by focusing on the strategic alliances to move
forward in the market. The method of strategic alliances but the method includes risks for the
company in terms of financial loss. So, by differentiation strategy, company can enter in the
unexplored market without fear of huge loss. On the other hand, company needs to be careful in
the differentiation strategy. There is no doubt that Apple is fully capable in providing
differentiated and unique product due to R&D capabilities and technological advancements but
reducing the cost of operations and selecting new vendors for some products can be challenging.
These may need extensive research and lots of time in order to make the products unique in the
market (Biggadike, E2010).
Based on the above analysis, it is observed that the selection if the strategic choice is not
easy for the companies. In order to select right strategy for the business, companies need to
analyze external and internal environments of the market to get knowledge about the needs and
requirements of the customers. The factors suitability, feasibility and acceptability provide
logical and comprehensive approach for the selected strategy. Differentiation strategy is helpful
for the company for continuous involvement in the market for the growth and development. It
can be said that differentiation strategy can generate effective results in terms of increasing
market share, competitive advantage, increasing customer base and higher projects in the market.

Strategy 6
References
Biggadike, E. R. (2010).
The contributions of marketing to strategic management: Academy of
Management Review. 6. 621-632
Braun, M. & Latham, S. (2014).
Mastering Strategy. Santa Barbara: ABC-CLIO.
Crossan, M. M., (2011).
Strategic Analysis and Action. (8th). Pearson Education Canada.
Ferrell, O. C., & Hartline, M. D. (2008).
Marketing Strategy. (4th). Mason: Thomson Corporation.
117
Graham, H., (2008).
Marketing Strategy and Competitive Positioning. (4th). Pearson Education India
Gruca, T. S. & Rego, L. L. (2009).
Customer Satisfaction, Cash Flow and Shareholder Value:
Journal of Marketing. 69. 115–30
Kaplan, R., & Norton, D. (2006). How to implement a new strategy without disrupting your
organization: Harvard Business Review. 100-109
Payne, A., & Holt, S., (2008).
Diagnosing Customer Value: Integrating the Value Process and
Relationship Marketing: British Journal of Management. 12 (2). pp 159 - 182.