Question: Please reply to this discussion.... As I consider this topic of business strategy, I am drawn to differentiation. During the Formulation Phase of the AIF

Please reply to this discussion....

As I consider this topic of business strategy, I am drawn to differentiation. During the Formulation Phase of the AIF Strategy Framework, one of a few business strategy options is differentiation. This strategy seeks to create higher value for customers than the value that competitors create, by delivering products or services with unique features while keeping costs at the same or similar levels, allowing the firm to charge higher prices to its customers (Rothaermel, 2021, p. 196-197). From my perspective, this takes creativity and innovation to peak interest with consumers, to pinpoint something that matters and causes them to purchase your product or service, and to keep it relevant over time against competitive forces. The value drivers, as noted in our text, are product features, customer service, and complements (Rothaermel, 2021, p. 200). To align this business strategy with a small and local business, I selected Sidecar Doughnuts & Coffee. This business claims, The Worlds Freshest Doughnuts (Sidecar Doughnuts, 2020). There are locations in Los Angeles, Torrance, San Diego, Santa Monica, and Costa Mesa, all of which are in California. As consumers continue looking for less processed, organic, and healthier alternatives, even doughnuts can be improved. Therefore, Sidecar has differentiated themselves by offering hot and fresh doughnuts, made from scratch, using the finest ingredients, hand crafted dough, purees, and fresh cream. They use seasonal and local products. This business makes fresh batches of doughnuts every hour so consumers can literally purchase a warm donut with house made glaze still melting on top. There are seasonal flavors and other savory options that include fresh herbs and spices. These doughnuts are not overloaded with sugar, they dont use artificial flavors or preservatives, and they offer gluten free and vegan options. Not only does this product differentiate from the usual, but this business also offers exceptional customer service, and it gives back to the local community with its SideCares program. Just one of the program features is to Buy a Hero a Doughnut and is focused on healthcare workers, teachers, etc. in the local community, and seems to be a new addition as a result of the pandemic. This includes delivery of the doughnuts and coffee to the selected heroes. Although Sidecar doughnuts are priced higher than your typical doughnut, a consumer would view this as worth the money and the business is able to maintain its profit. This differentiation has led to its success since their story began in 2012.

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