differentiation
What differentiation means in Business A-Level, as defined for AQA.
Definitions of differentiation
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Reference: AQA
Offering unique value that commands a higher price, achieved through superior quality, customisation or speed of response.
Using brand, quality, service or design so that customers accept a higher price, which widens contribution per unit.
A position in Porter's generic strategies that reaches the customer through something the customer values more.
Offering something buyers value enough to pay a premium for, held in place by brand, design or service.
Topics that use differentiation
- Human resource management (AQA A-Level)
- Marketing management (AQA A-Level)
- Operational management (AQA A-Level)
- Strategic positioning: choosing how to compete (AQA A-Level)
Related terms
- cost leadership
- functional interdependence
- application to a named business
- focus strategy
- labour productivity
- automation
- capacity and flexibility
- capacity and headcount
Using differentiation in the exam
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