Final answer:
A company that creates a service with unique features for which customers are willing to pay more is following a Differentiation Strategy. This strategy involves offering differentiated products that can be physical, location-based, intangible, or perception-oriented. Specializing in a core competency can also be part of this strategy.
Step-by-step explanation:
When a company is focused on creating a service with unique elements that customers are willing to pay higher prices for, this is known as a Differentiation Strategy. Differentiation can be achieved through various means such as the physical aspects of a product, the location from which it is sold, its intangible features, and the overall perceptions of the product. Products and services that are unique in these areas are differentiated products. Implementing a differentiation strategy allows a company to command a premium price, thus maximizing its profitability based on the perceived additional value from its customers.
A business may also focus on just one or a few products or services, often referred to as its 'core competency', to create a form of differentiation and establish itself as a specialist in that area. This specialization can also be part of a differentiation strategy as it concentrates on providing exceptional quality or service in a particular niche market.