In Porter's model, what is the differentiation strategy?

Win by offering products or services with distinctive features that competitors don't provide, so customers pay for the uniqueness rather than the lowest price.

Differentiation competes on uniqueness and perceived value rather than price. The distinctive feature might be design, quality, brand, service, or technology — anything that makes the offering hard to substitute.

If customers value the difference, the firm can command a premium price and build loyalty, insulating it from pure price competition.

Tip: Apple is the textbook differentiator — people pay more for the brand/ecosystem, not because it's the cheapest. In security products, "we have a unique detection capability" is a differentiation play.

Go deeper:

• Porter's generic strategies (Wikipedia) — differentiation as one corner of the advantage×scope matrix, with examples and critiques.