THE INFLUENCE OF DIFFERENTIATION STRATEGY AND PRODUCT INNOVATION ON COMPETITIVE ADVANTAGE

Abstract

Competitive advantage is a crucial factor in ensuring the success of a company in an increasingly competitive market. Differentiation strategy is implemented through creating added value in products or services that differentiates the company from its competitors, while product innovation involves the development and implementation of new ideas to increase the product's appeal. This research aims to investigate the influence of differentiation strategy and product innovation on competitive advantage at the Bu Imas restaurant. This research uses a quantitative approach with a simple random sampling technique so that a sample of 93 customers is obtained. Data collection was done by distributing questionnaires with regression analysis and hypothesis testing with the help of the SPSS.25.0 tool. The research results show that the differentiation strategy and product innovation partially have a positive and significant effect on the competitive advantage of the Bu Imas stall. Furthermore, the differentiation strategy and product innovation simultaneously have a positive and significant effect on the competitive advantage of the Bu Imas food stall with a magnitude of 34.3%.