Definition of Focused Differentiation
Focused differentiation is a business strategy by which a company tries to get a competitive advantage by offering products and services that are differentiated from the competition. It is a niche to which products are offered that are differentiated and specialized. With this strategy, a company can get an exclusive excess to its niche. The company can make a lot of profit as the customer’s demands are fulfilled by that company.
Example of Focused Differentiation:
Let's take the example of a company that produces specialized water bottles for cyclists who train and take part in road bicycle racing. The bottle is unique in design, easy to carry, can keep a liquid hot and cold for more than 5 hours. Here the company is only focused on the small niche of the market with a differentiated product offering.