ABSTRACT
In this highly competitive society, how to enhance the competitiveness of enterprises is considered as the most important issue. In order to gain a higher market share, companies will take all kinds of measures. Among these, product differentiation could be a good and helpful way to enhance the competitiveness power of enterprises.
This article mainly talks about a market in taobao.com. At the beginning, the article analyzed the competitors in this market, and summarized that this market is similar to monopolistic competition market. Then we discussed how companies make product differentiation decisions in different market situations. By using Specific cases, we finally found out the general ways for companies to enhance their competitiveness through product differentiation.