What is the primary goal of a differentiation strategy in an organization?

A differentiation strategy aims to create a competitive advantage by offering unique products or services that stand out from those of competitors. This uniqueness can stem from various factors such as quality, features, design, brand image, or customer experience. By emphasizing these unique offerings, organizations can attract a specific segment of the market that values the distinct aspects of what they provide, allowing them to command higher prices and foster customer loyalty.

The other options do not align with the primary goal of a differentiation strategy. For instance, reducing costs pertains more to a cost leadership strategy, which focuses on being the lowest-cost provider in the industry. Enhancing customer service, while important, is not the sole focus of differentiation since it encompasses a broader array of factors beyond customer interaction. Finally, eliminating competition entirely is unrealistic in most markets and does not reflect the constructive nature of a differentiation approach that seeks to coexist by providing value through uniqueness rather than attempting to drive competitors out.