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This strategy aims to create differentiating factors, thereby increasing competitiveness with competitors in the same field while creating an impression on customers, making them remember your brand more. Indicators of the success of this point of difference will bring customers certain benefits and give the business brand customer loyalty.development. Brief history of forming a differentiation strategy Differentiation strategy is one of three general strategies including: focus strategy, differentiation strategy and optimal cost strategy, published in the book "Competitive Advantage" by Professor Michael Porter.



Michael Porter is one of the famous and erudite professors of Harvard University. Some of Email Data his classic books include: " Competitive Strategy ", "Competitive Advantage", ... Among them is the book "Competitive Advantage of Nations", known as the "bedside table" book of many strategists around the world. According to professor Michael Porter, differentiation strategy can be applied in two ways as follows Broad differentiation strategy (focus on many customers/markets) Narrow differentiation strategy (focus on small markets) Differentiation strategy is the world's leading method used by businesses as a way to create "uniqueness" for their businesses. Applying skills, thinking, and creativity well can bring a unique monopoly to your business. But to do that, entrepreneurs must know how to properly apply the differentiation strategy for the target group the business is targeting.



If applied incorrectly, not only will you lose your competitive position but you will also be forgotten by the founders. Broad differentiation strategy Businesses apply broad strategy (also known as universal strategy) when they want to reach popular customers with a large scope, regardless of age or purpose of use. For example: Vinamilk is a brand that applies a broad differentiation strategy, using the sponsor brand (vinamilk) on all product lines focusing on many specific customer groups: milk for stunted children, milk for people who want to lose weight,... Narrow differentiation strategy In contrast to the broad differentiation strategy, the narrow differentiation strategy only focuses on a group of objects with a small market segment (Niche market). This is a market that few people pay attention to and its nature and purpose are poorly used. Although it is a little-known market, it can create high recognition if successful in these fields.