Differentiation is all about making sure that your products stand out from your competitors. This is so that people will come and purchase your products rather than your competitors allowing you to maximise profits, get a good reputation and gain many, many customers. The key to this is to make sure that your product stands out from others by making them unique.

The benefits of this would be that you are able to gain more customers, loyal customers, get a good reputation and positive media.

The problem to this could be that you have to much competition therefore you end up over-pricing and this would drive away customers. This is seen with Apple. Due to there being multiple phone business, they all compete and Apple charge more than ¬£600 for one of their phone products. However, instead of driving people away, surprisingly they gain more customers and are very popular as well as most people are ok with this.