Value Chain Glossary: Differentiation
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Differentiation
Differentiation is the process of creating a product that offers qualities or characteristics that are not currently available from other firms or industries on the market. This is one important way to achieve and maintain competitiveness. For example, Ethiopia's coffee sector became competitive on the international market by offering specialty coffee with characteristics that vary by location and, importantly, making the specific origin known to consumers. Rather than continuing to sell undifferentiated Robusta coffee, coffee producers began to sell high-quality Arabica coffee that was branded by location, including Sidamo, Limu, Oromia, and others. A high demand in the United States and Europe for specialty coffees enabled Ethiopian coffee to achieve competitiveness through differentiation.[1]
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Footnotes
- ↑ [1] Ethiopia's Coffee Sector: A Better or Bitter Future. Petit, Nicolas . April, 2007.
- ↑ [2] Limu Coffee: The Coffee Roasting Co.
![[2]](http://www.coffeecompany.co.za/limu.h5.jpg){kind=link}