Final answer:
Offering products with unique features is an example of competing on the basis of differentiation.
Step-by-step explanation:
An example of competing on the basis of differentiation is offering products with unique features.
Differentiation involves making a firm's products distinct from its competitors through various means such as physical aspects, location, intangible aspects, and perceptions. When a firm offers products with unique features that set them apart from competitors, they are competing on the basis of differentiation.
For example, consider two smartphone companies. Company A offers a phone with a unique folding display, while Company B offers a standard phone without any unique features. In this case, Company A is competing on the basis of differentiation by offering a product with a unique feature - the folding display.