For over 70 years, managers have assumed that differentiation is a competitive

advantage and try to differentiate their products as much as possible.

Competitive Advantages are always positive for any business but differentiated products

are only positive for customers if they perceive this difference as useful and positive for

them. The Competitive Advantages that are perceived as positive by customers are called

Differential Variables.

This is a tool for identifying and evaluating the Differential Variables.

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