ABSTRACT

A strategy can provide support for a company to compete. One of the competitive advantage indicators is differentiation strategy. A company can differentiate strategy targeted to the market by performing product differentiation, service differentiation and company’s image differentiation strategies. This research examined the effect of product, service, and image differentiation strategies on competitive advantage. The objective was to determine the influence of product differentiation, service differentiation and image differentiation strategies on competitive advantage conducted in one of the restaurants located in Surabaya. The research model used was questionnaires. The sampling technique used was accidental sampling involving 157 respondents. The analytical method employed multiple linear regression analysis. Furthermore, correlation calculation was used to determine the degree of the influence and the significance of product differentiation, service differentiation and image differentiation strategies on competitive advantage.