In the 1920s, the ford motor company dominated the automotive industry. henry ford's low-priced, mass-produced model t, available in only one color and with few options, was selling like hot cakes to car buyers. in order to combat ford's success, general motors offered automobiles in a variety of colors and with special features that were designed to fit the specific needs and wants of individual car buyers in many different segments of the market. by employing a(n , general motors developed a position that was very distinct from that of the ford motor company.

By employing a differentiation strategy, general motors developed a position that was very distinct from that of the ford motor company.

A differentiation strategy is a strategy where a firm wants to become unique within their industry. When two different companies who have overall, the same consumer base, are able to differ in many ways, this is known as the differentiation strategy. There are unique products and services being offered depending on which company they go with. Competing companies do their best to differentiate and set themselves apart from like-companies.