do it by Jon

In today`s economic society, many people are trying to build their own business. Therefore, the whole market become more competitive and ruthless. Some organisations increase their customers and profit significantly, on the other hand, the company which do the same products in poor decisions will face the situation of collapse. In the front of this essay will demonstrate the strategy business unit and competitive strategy. Then it will focus on the differentiation is the important part in generic strategy by showing the benefits and drawbacks. On the one hand, we will give some brand examples to support the reason why differentiation is the competitive tactic in the organisation. The last section would illustrate the impacts of differentiation strategy.

First, strategy business unit can be defined as an independent management department of a large company, with its vision, mission and objectives, and its plans to separate from the rest of the company's business. (Business Jargons, n.d.). This department would research the products which can attract customer, then write a budget to explain how much they will cost on the materials and profit they can gain from their activities. For a great fruit company, they would find an acceptable supplier which gives a lowest cost of different healthy and fresh fruits. Then they need focus on consumer`s direction to know which fruit are popular in the market. Therefore it can help them to buy the right fruits from the supplier because of different ages. Furthermore, they need know their competitors and how to make differences between those companies. Therefore, competitive strategy is a huge part for organisation to analyse. As porter says, competitive strategy is the main concern of the management, mainly depends on the industry and competitors. Moreover, Competitive strategy provides a rich framework to understand the potential power of the five forces which are supplier, buyer power, competitive rivalry, threat of substitution and new entry, all of them are captured by industry competition. (MindTools, n.d.) The framework reveals considerable differences between sensors, industry developments, and how companies find unique positions. Competitive strategy provides tools to capture the plentiful and heterogeneity of the industry and the company, while providing a review of the disciplinary structure. (Porter, 1998) Through this strategy, we can easily to summarize the competitive advantages which are completed customer`s demand and achieved real benefits like using the internet to instead of newspaper. (Amadeo, 2017)

Second, business strategy includes two major strategies which are generic and interactive strategies. In addition, generic strategies have cost leadership, differentiation, focus and strategy clock. The cost leadership is used by companies to control a lowest operation costs in order to create more advantages from the same market competitors. (Business Dictionary, n.d.) For instance, The Swedish furniture retailer Ikea changed the furniture business by offering cheap and high quality item. Ikea can keep its costs low by sourcing its items in low-wage nations and by offering an exceptionally fundamental level of administration. Ikea does not gather or convey their products. Clients should collect the furniture in the distribution centre and amass at home themselves. While this is less helpful than conventional retailers, it enables Ikea to offer lower costs that pull in clients. (Scilly, n.d.)

Next, differentiation is the vital process for an organisation. It defined as a firm strives to be peculiar in its industry and is broadly esteemed by purchasers. It chooses one or more attributes, many buyers in an industry that are important, unique locations to meet these needs. It is compensated for its uniqueness with an excellent cost. (IfM, n.d.) In a differentiation strategy, the organization tries to recognize differences between other industries and their own products or services. It can reduce competitors' competition and the threat of alternative products because customers are loyal to the company's brand. Effective methodologies require some costly exercises, for example, item research make plan and broad promoting. Organizations require solid advertising and inventive staff who have time and assets to look for advancement. (Richard et al, 2010:59) From own point of view, differentiation can be a company to develop rapidly. Because the market has a lot of companies doing the same type of goods, but it has a different harvest. Through the selection of staff, advertising design, and customer experience allows companies to more easily grasp the consumer groups. Employees must choose innovative thinking, and can effectively participate in teamwork. Advertising design is to allow customers to understand the design concept of the first time, but also through modern technology so that everyone knows the benefits of the product. Customer experience is a way for consumers to rely on products, but also from the customer's advice to be improved. For a successful example which is the large foods market called ‘Whole Foods Market’. They surmount other organization through content generators and thought pioneers. They have a superb technology for the combination of traditional marketing and branding methods, while also using their website to provide a new experience offline and online. Thus telling consumers where to find healthy food sources. And finally let them know that whole food is the top, large, national store. Their employees will share ideas, find significant substance, not gloat or "sales drive" since they comprehend their customer needs. Through an assortment of approaches to advance the "green" lifestyle such as dispose of plastic packs. (Bethany, 2014) Most people will choose green consumption, in order to make their own life to keep fresh and safe. Whole foods market to seize this point, which will get the consumer's favourite, and then attract people to buy clean and healthy food.

Moreover, the benefit of a product differentiation strategy is not only make special value such as decrease the real cost of a product but also increase the durability of the goods. (Luanne, n.d.) In this case, the company`s location can influence the costs, if the market economy is chosen in the city centre, this will increase the fixed costs because of the expensive rent. Like the British ASDA supermarket, it locates on the edges of the downtown about four miles away. There is no contrast amongst business and other stores in the city centre, and in particular, they diminish a large portion of the lease, yet rather to contract responsible employee and advance equipment from different nations. It can raise the purchaser execution that maximise the consumer`s satisfaction degree with lower requirements. (Phillp, 2013) For example, Mercedes Benz car manufactures have different shape of the various brands, and the producers will spend a long time in the interior design, in order to attract a lot of car fans to see their advertisement. Manufacturers can maintain their average life expectancy for ten or more years. And the company will provide consumers with three years of car protection contract, to now, has reached 98% customer satisfaction. (Sytner, n.d.) In the highly competitive market, employee loyalty is important. Because if a company has a serious economic loss, it is possible to reduce or default on the wages of employees. And employees will create unconditional choice to quit some of the strength of the company to work. If a company creates an excellent differentiation program, there will be a significant increase in the positive level of the staff attitude. At the same time, if the company's profit is high, it will increase the treatment of employees, such as providing staff breakfast, cars, and tourism. There is also an advantage that there is no alternative to the goods. Because, a product differentiation strategy highlights the quality and design, therefore there is no substitute can access. Despite the fact that company has the same item, the differentiation strategy will focus on making difference with others. (Luanne, n.d.)

On the other hand, differentiation strategy has some drawbacks as well. It may impact high barriers for other new firms to join into the market. This is because some successful organisation will give deep pressure to the new firms. They can set a higher price for a same item, because it has a good reputation.

In conclusion, the differentiation strategy is based on the market segmentation, targeting the individual needs of the market through brand positioning and dissemination. It gives the brand unique value, establish a clear image, the establishment of brand differentiation and personalized core competitive advantage. The key to differentiated marketing is to actively look for gaps in the market, then select the target market to tap the individual needs that consumers have not yet met in order to develop new features of the product. Differentiated marketing is based on the diversification of consumer demand. Different consumers have different hobbies, personality, values, income levels and consumption ideas.