What type of strategy is commonly focused on providing a unique product or service to a target market?

The differentiation strategy is focused on providing a unique product or service to a target market. This approach allows a company to stand out in a competitive landscape by offering features, quality, or services that are perceived as distinct from the offerings of competitors. When companies implement a differentiation strategy, they often invest in innovation, branding, and marketing to highlight the uniqueness of their products or services. This can lead to the ability to charge a premium price because consumers may be willing to pay more for what they perceive as superior value or distinctiveness.

By successfully differentiating their products or services, companies can create a loyal customer base that is less sensitive to price changes and has a strong preference for their unique offerings. This strategic focus enables businesses to cultivate a competitive advantage in specific market segments.