Which strategy focuses on establishing competitive advantage through differentiation?

The strategy that focuses on establishing competitive advantage through differentiation is the Product Differentiation Strategy. This approach allows a company to stand out in the marketplace by offering unique products or services that provide distinct benefits not offered by competitors. Differentiation can be achieved through various means such as higher quality, innovative features, superior customer service, or enhanced branding.

By effectively implementing a product differentiation strategy, a company can create a strong brand identity and attract a loyal customer base willing to pay a premium for the distinctive attributes of their offering. This strategy, in contrast to others, directly targets the uniqueness of the product or service as a means to drive customer preference and loyalty, ultimately leading to competitive advantage in the industry.