THE IMPACT OF DIFFERENTIATION STRATEGY AND PRODUCT INNOVATION ON COMPETITIVE ADVANTAGE IN THE ECO-FRIENDLY FASHION INDUSTRY
Keywords:
Differentiation, Product Innovation, Competitive Advantage, Eco-Friendly Fashion, Business Strategy.Abstract
The fashion industry today faces intense competition and growing consumer demand for products that are not only aesthetically appealing but also sustainable. This study aims to analyze the effect of differentiation strategy and product innovation on competitive advantage in eco-friendly fashion companies. A qualitative case study was conducted on Company X, a leading player in Indonesia’s sustainable fashion sector. Data were collected through in-depth interviews, field observations, and company documentation. The data were analyzed descriptively to identify best practices in implementing differentiation and product innovation strategies. The results indicate that the implementation of differentiation strategy, supported by product innovation, significantly enhances competitive advantage, particularly through product value-added, unique design, and eco-friendly brand image.
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References
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6. Certainly! Here's an expanded list of scholarly references to support your journal on the impact of differentiation strategy and product innovation on competitive advantage in the eco-friendly fashion industry:
7. Baykal, J., & Delagarde, M. (2011). Differentiation strategies in the fashion industry: A case study of Zara. DiVA Portal. This study analyzes various differentiation strategies employed by Zara, including product, channel, image, service, and personnel differentiation, to attract new customers and gain competitive advantage.
8. Adilfi, N., & Yuldinawati, L. (2024). The influence of innovation and product quality on the competitive advantage of Compass products. Eduvest – Journal of Universal Studies, 4(9), 7983-7995. This research examines how product innovation and quality impact the competitive advantage of Compass, a local shoe manufacturer in Indonesia, highlighting the significance of these factors in the fashion industry.
9. Mahendra, A. Y., & Nuvriasari, A. (2025). The effect of customer orientation and product innovation on fashion business performance with competitive advantage as a mediator. JALAKOTEK: Journal of Accounting Law Communication and Technology, 2(1), 683-699.
This study investigates the mediating role of competitive advantage between customer orientation, product innovation, and business performance in the fashion industry.
10. Font, P. (2020). Sustaining a competitive advantage in the fashion luxury market: A case study of emerging fashion brands. DiVA Portal. This research explores how emerging fashion brands can sustain a competitive advantage in the luxury market by adopting differentiation strategies and innovative business models.
11. Mailani, D., Hulu, M. Z. T., & Simamora, M. R. (2024). Resource-Based View Theory to achieve a sustainable competitive advantage of the firm: A systematic literature review. ResearchGate. This systematic literature review analyzes the role of the Resource-Based View (RBV) in achieving sustainable competitive advantage, focusing on supply chain and customer information fields.
12. Ghahroudi, M., & Sagheb, M. (2018). The impact of differentiation strategies on the performance of women's fashion clothing industry. ResearchGate.
This study examines the effect of differentiation strategies on the performance of women's clothing mesons in Tehran, Iran, highlighting the significance of service differentiation in creating competitive advantage.
13. Adilfi, N., & Yuldinawati, L. (2024). The influence of innovation and product quality on the competitive advantage of Compass products. Eduvest – Journal of Universal Studies, 4(9), 7983-7995. This research investigates how product innovation and quality contribute to the competitive advantage of Compass products, emphasizing their importance in the fashion industry.
14. Mahendra, A. Y., & Nuvriasari, A. (2025). The effect of customer orientation and product innovation on fashion business performance with competitive advantage as a mediator. JALAKOTEK: Journal of Accounting Law Communication and Technology, 2(1), 683-699.
This study analyzes the influence of customer orientation and product innovation on fashion business performance, with competitive advantage serving as a mediator.
15. Adilfi, N., & Yuldinawati, L. (2024). The influence of innovation and product quality on the competitive advantage of Compass products. Eduvest – Journal of Universal Studies, 4(9), 7983–7995. https://eduvest.greenvest.co.id/index.php/edv/article/view/17486
16. Barney, J. B. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99–120. https://doi.org/10.1177/014920639101700108
17. Baykal, J., & Delagarde, M. (2011). Differentiation strategies in the fashion industry: A case study of Zara. DiVA Portal. https://www.diva-portal.org/smash/get/diva2%3A427555/FULLTEXT02.pdf
18. Font, P. (2020). Sustaining a competitive advantage in the fashion luxury market: A case study of emerging fashion brands. DiVA Portal. https://www.diva-portal.org/smash/get/diva2%3A1474617/FULLTEXT01.pdf
19. Ghahroudi, M., & Sagheb, M. (2018). The impact of differentiation strategies on the performance of women's fashion clothing industry. ResearchGate. https://www.researchgate.net/publication/329811480_The_Impact_of_Differentiation_Strategies_on_the_Women_Fashion-Clothing%27_Performance
20. Mahendra, A. Y., & Nuvriasari, A. (2025). The effect of customer orientation and product innovation on fashion business performance with competitive advantage as a mediator. JALAKOTEK: Journal of Accounting Law Communication and Technology, 2(1), 683–699. https://www.researchgate.net/publication/387547835_The_Effect_of_Customer_Orientation_and_Product_Innovation_on_Fashion_Business_Performance_With_Competitive_Advantage_as_a_Mediator
21. Mailani, D., Hulu, M. Z. T., & Simamora, M. R. (2024). Resource-based view theory to achieve a sustainable competitive advantage of the firm: A systematic literature review. ResearchGate. https://www.researchgate.net/publication/384721885_Resource-Based_View_Theory_to_Achieve_a_Sustainable_Competitive_Advantage_of_the_Firm_Systematic_Literature_Review
22. Porter, M. E. (1985). Competitive advantage: Creating and sustaining superior performance. Free Press.
23. Schumpeter, J. A. (1934). The theory of economic development. Harvard University Press.
