A business strategy that seeks to build competitive advantage with its product or service by having it be “different” from other available competitive products based on features, performance, or other factors not directly related to cost and price, The difference would be one that would be hard to create and /or difficult to copy or imitate.

Differentiation is a firm seeks to be unique in its industry along dimensions that are widely valued by buyers.

In conditioning, a procedure whereby an animal is trained to distinguish between two similar stimuli or two similar responses is called differentiation.  

Webster Dictionary Meaning

1. Differentiation
- The act of differentiating.
- The act of distinguishing or describing a thing, by giving its different, or specific difference; exact definition or determination.
- The gradual formation or production of organs or parts by a process of evolution or development, as when the seed develops the root and the stem, the initial stem develops the leaf, branches, and flower buds; or in animal life, when the germ evolves the digestive and other organs and members, or when the animals as they advance in organization acquire special organs for specific purposes.
- The supposed act or tendency in being of every kind, whether organic or inorganic, to assume or produce a more complex structure or functions.
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