In today’s competitive marketplace, most businesses need to adopt some form of differentiation strategy.
There are two main ways to do this: broad differentiation or niche specialization.
Broad differentiation is a type of strategy that strives for excellence in many different areas.
Rather than focusing on just one thing.
Niche specialization is the opposite .
It focuses on one particular area and tries to be the best at what they do in that specific industry.
Which strategy should you choose?
Broad differentiation tends to be the best strategy in situations where.
For example, a company has many potential customers and it can’t afford not to provide all of them with what they need.
An excellent example is Starbucks – while coffee is their specialty, they also offer sandwiches and baked goods that appeal to everyone’s needs.
It works well because there are so many people who want different things from their morning routine or lunchtime outing.
With niche specialization you would either have subpar products.
Find yourself stretched too thin trying to deliver on everything your target audience might want at once.
Niche specialization often works better when business owners know exactly what product will sell and can devote themselves entirely to developing it into something amazing without any compromises.