Niche differentiation refers to the process by which businesses or species adapt to occupy specific roles or markets within a larger ecosystem. This allows them to reduce competition by focusing on unique products, services, or ecological functions. For example, in nature, different bird species may evolve distinct beak shapes to access various food sources, minimizing overlap in their diets. In a business context, companies like Apple and Samsung differentiate their products by targeting different consumer preferences and price points. This strategy helps them attract specific customer segments, ensuring that they can coexist in the market without directly competing for the same audience.