Differentiation Strategy for Sustainable Business Operations

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).