Final answer:
Schwinn adding unique features to its bicycles is an example of product differentiation, a strategy to make their products stand out in the marketplace.
Step-by-step explanation:
When Schwinn adds features to its bicycles that no other companies offer, the company is engaging in product differentiation. Product differentiation is any action that firms take to make consumers think their products are different from their competitors. It can be achieved through several means such as unique physical features, exclusive locations, intangible aspects such as reputation or service, and shaping consumer perceptions. Schwinn's decision to include exclusive features is a strategic effort to stand out in the market by offering something unique that competitors do not provide. This aspect of business strategy helps Schwinn position its bicycles in such a way that consumers perceive them as superior or more fitting to their needs compared to other brands.