A Differentiation Strategy is a business approach where a company seeks to stand out from its competitors by offering unique products or services. This uniqueness can come from various factors, such as superior quality, innovative features, exceptional customer service, or a strong brand image. By focusing on what makes their offerings distinct, companies aim to attract a specific segment of customers willing to pay a premium for these advantages. This strategy is often employed by companies like Apple or Tesla, which emphasize innovation and design to create a loyal customer base. By differentiating themselves, these companies can reduce price competition and enhance customer loyalty, ultimately leading to higher profit margins.