Definition
Differentiation is the strategy of making a product or service distinct from competitors in the market. Founders reach for it when a vague conversation needs a shared, specific meaning. Name it clearly, then let the next decision — a hire, a price, a test, or a pass — follow from that meaning.
In the room
How the word shows up in a real conversation.
Two cofounders disagree until they define Differentiation. Once they agree it means “Strategy of making a product or service distinct from competitors in the market”, the argument becomes a decision.
Common mistake
Using Differentiation as a label instead of a fact. If you cannot point to the evidence — a number, a customer, or a written assumption — you are using the word as jargon.
See also
Differentiation strategy
Competitive approach focused on creating unique value for customers.
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Developmental stage
Early phase of a company's lifecycle focused on research and development.
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Diamond model
Strategic framework for analyzing competitive advantage in national industries.
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Digital disruption
Transformation of industries through digital technologies and business models.
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