Differentiation is an essential component of strategy, yet it is frequently misunderstood, misapplied, and underappreciated. If you find you are always on the receiving end of a price negotiation, you may be tempted to think your prices are too high. But that's probably not the case. Most likely, your business suffers from lack of differentiation, and your margins are suffering because of it. This article walks you through the building blocks of differentiation.