Strategies for Increasing Business Competition Through Product Differentiation: A Review of Innovation Theory

The digital era and the development of the times mean that businesses must continue to innovate in their product and strategy because business competition leads to global competition. Many companies do not survive because they cannot adapt to changes in customer preferences and market trends. This research describes the strategy of increasing business competition through product differentiation. This research uses a qualitative approach to the literature review method. The research data was collected through secondary data, and relevant research was identified through the research topic. Furthermore, the sources obtained from the literature were selected according to their relevance and quality. The research shows that the strategy of increasing business competition through product differentiation can be done by creating innovations by focusing on form innovation, features, work quality, conformity quality, durability, reliability, style, and design. The process of product differentiation carried out in a business needs to consider the risks that may occur, such as rejection from consumers, innovation costs that are not cheap, limited resources, and decreased profitability.