Imagine that you're the owner of a small store that sells golf equipment and supplies. Spring is fast approaching, and you anticipate high demand over the coming months. Amateur golfers are always looking for the latest and the best equipment. Still, in recent years, you have faced strong competition from the pro-shops at the local country clubs, and you realize you need a competitive advantage to bring more customers to your store. You need to offer something that appeals to your customers enough that they will pay more to purchase your product. What you need is a differentiation strategy.

What is a differentiation strategy? As you have been learning, a differentiation strategy is a way for a business to distinguish itself from the competition by developing a product or service that is unique in the marketplace and that customers will prefer over the competition. Successful differentiation means that the company will be able to charge a premium for its product or service. However, differentiation often involves higher costs, so the growth in its customer base must be sufficient to cover any extra costs and meet profit goals. identifies the internal and external environment factors that influence the store's golf equipment sales and why a differentiation strategy could be effective at attracting new customers to the store. Explain the elements of the strategy and the impact on costs. Discuss the reasons why this differentiation strategy should be a successful way to increase sales and profits. Include sub-headings for each issue being addressed.