Your business needs a differentiation strategy – there is no question. Every business does if it wants to optimize its differentiation potential. Differentiation strategies come in many flavors. Here are some of the most prevalent and effective types:

“LINE IN THE SAND” DIFFERENTIATION STRATEGIES:

1. The “Only” – With this differentiation strategy you hang your hat on the fact your business is the only one that offers the types of products/services you do. You might own an entire market segment all by yourself or you may play in an existing segment but offer something no one else offers. This is my favorite differentiation strategy.

2. The “Largest” – Based on market share, staff size or annual sales revenue, this differentiation strategy focuses on your business’s breadth as compared to your competitors. This too is a very effective differentiation strategy when it is verifiable.

3. The “Fastest Growing” – Usually associated with a smaller player in a given industry segment, this differentiation strategy promotes the fact that your business is growing faster than any other provider. This can be based on revenue, staff, customer base, market capitalization, etc. You have a lot of leeway in terms of how you quantify and qualify this positioning strategy.

4. The “Most Comprehensive” – This differentiation strategy espouses the breadth and completeness off your solution portfolio. Perhaps you have the most different types of widgets or maybe your business is the only one that offers a one-stop-shop for legal services spanning wills, traffic tickets, corporate law, divorce, etc. all under one roof.

“KEY ATTRIBUTE” DIFFERENTIATION STRATEGIES:

1. “Organizational Distinction” – With this differentiation strategy you are distinguishing your business based on the uniqueness of its ownership. Examples include minority-owned, woman-owned, non-profit, charitable, etc.

2. “Geographic Distinction” – With this differentiation strategy, you are trying to stand out based on the geographic designation of your company. Perhaps you are the only “U.S. operated” or “U.S. based” provider in your segment; or maybe you are the only “European provider”.

3. “Industry Distinction” – Within your market segment (e.g. computer services), perhaps you are the only provider focused solely on the Insurance sector; or maybe you are a web development company that only focuses on non-profits. This industry-specific focus in a viable differentiation strategy.