Definition and Discussion of Differentiation and Integration

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Define and discuss differentiation and integration. Differentiation is where the company tries to be unique in order to stand out and attract its client by offering something different. This may be either on high quality, specialized service, or an original product or service or a combination of all three points. The company can also differentiate itself via its marketing. Technology is another case in point where introducers of new technology have the 'in' in a market and can promote their business also arbitrarily implementing a higher price since they are the first mover. However, innovation is attended with risks and differentiation by innovation may not always succeed. Sometimes, indeed, it is the follower who models the first 'mover' and improves on the innovation and launching of the innovation who may better succeed and differentiate itself since eth follower can adapt the innovation to its buyer's needs without the attendant problems. Microsoft was such an example where it bought MS-DOS and then structured it to its own ends. Differentiation, essentially, succeeds by the company adopting a certain strategy or plan that its competitors are unable to follow and that is highly attractive to its clients. This is the best and most profitable sort of differentiation. Vertical integration refers to the acquisition or development of new businesses that produce parts of the organization's product. The suppliers and distributors are, in effect, part of the
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