Differentiation focus is a business strategy where a company targets a specific market segment while offering unique products or services. This approach allows businesses to stand out from competitors by emphasizing distinctive features, quality, or customer service tailored to the needs of a particular group. By concentrating on a niche market, companies can build strong brand loyalty and command higher prices. For example, a luxury brand like Gucci may focus on affluent consumers seeking exclusive fashion items, differentiating itself from mass-market retailers. This strategy can lead to increased profitability and a loyal customer base.