ACCA Strategic Business Leader (SBL) Practice Exam

A differentiation strategy aims to achieve the provision of unique products or services that distinguish a company from its competitors. By focusing on unique attributes, quality, or innovations in their offerings, organizations can create a competitive advantage. This uniqueness allows them to target specific customer segments that value those differentiating factors and are often willing to pay a premium for them.

This approach contrasts with other strategies such as merely offering generic products at low prices, which tends to focus on cost leadership rather than unique value. High-volume production suggests a focus on economies of scale, which doesn't necessarily align with differentiation. Lastly, standardizing offerings across markets relates more to a uniform product strategy, which typically does not leverage the unique characteristics that a differentiation strategy emphasizes. Thus, the aim is clearly focused on creating distinctive offerings that resonate with customers on a deeper level.