Differentiation refers to: creating products or providing services at the lowest cost possible relative to its competitors while maintaining a quality that is acceptable to consumers. the cost advantages that a business obtains through expanding in size. creating unique value for the customer through advanced technology, high-quality ingredients or components. product features, and superior delivery time. all the activities from the gathering of raw materialejo the sale of the finished product that a business goes through to make a product. the number of similar businesses or business activities at the same level of the value chain