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 Differentiation and Flying Star Cafe
     In the business world, various strategies are used to obtain a competitive advantage.  That I found interesting was the differentiation strategy in which an organization strives to increase perceived consumer value in order to receive a higher price for the product or service at hand.  The strategy is to highlight unique feature(s), services,  etc. not offered by any other competitor as well as focus on marketing and promotions rather than the cost component.  An organization is said to have obtained a competitive advantage in the event economic value (value-cost) is greater than that of competitors. (Rothaermel, 2017).  Organizations must keep in mind that through the process of differentiation costs may increase, thus, it is imperative that the firm remain cost conscientious so as to not erode the economic value and corresponding profit margin.

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     The small cafe described last week, Flying Star Cafe, positions them self through differentiation.  It is very well known through the community that they are at a higher price point; however, they are successful as the customer’s have a perception that they provide higher quality products than the average restaurant.  Flying Star prides themselves on being health conscious and also utilize humanely raised, antibiotic free/hormone free, wholesome and whole grain and organic ingredients.  This results in a consumer perception of a higher value in foods prepared in a more healthy and humane fashion.  



Rothaermel, Frank. (2017). Strategic Management:  Concepts 3e.  New York, NY:  Mc-Graw-
Hill Education.

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