Differentiation analysis is a strategic assessment process used by businesses to distinguish their products or services from competitors in the market. It involves identifying unique attributes, features, or characteristics that set a company's offerings apart and make them more appealing to customers. By conducting differentiation analysis, businesses can pinpoint their competitive advantages and use them to position their brand effectively, communicate their value proposition, and attract target consumers. This analysis helps companies stand out in a crowded marketplace and build a strong competitive edge.