Why is Product Differentiation Important for Entrepreneurs?
For entrepreneurs, product differentiation is essential for several reasons:
1. Competitive Advantage: It helps in creating a competitive advantage, allowing a startup to stand out in a crowded marketplace. 2. Customer Loyalty: Differentiated products often foster strong customer loyalty as they cater specifically to the needs and preferences of a particular segment. 3. Pricing Power: Unique products can command higher prices as customers perceive them to offer better value. 4. Market Penetration: Effective differentiation can facilitate easier market penetration, helping new ventures to carve out a niche.