Differential competitive advantage

Definition

Differential competitive advantage occurs when a company develops unique attributes or benefits in its products or services that set it apart from its competitors, making it more attractive to a specific target market. It focuses on creating superior value for customers through quality, features, or service levels not offered by competitors.

Related terms

Unique Selling Proposition (USP): A marketing strategy that highlights the unique benefits or characteristics of a product or service, distinguishing it from competitors.

Market Segmentation:

The process of dividing a broad consumer or business market into sub-groups of consumers based on some type of shared characteristics.

Brand Loyalty:

The tendency of consumers to continuously purchase one brand's products over another's due to their trust and satisfaction in that brand