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This essay looks at the various differentiation strategies for a company in the fashion industry. Zara has been chosen because it is a relatively new company which has grown quickly and today has a big market share. The aim of this thesis is to decide which differentiation strategies are the more relevant ones for Zara to attract new customers. This will be done through a discussion and analysis of all five of the differentiation strategies which are; product-, channel-, image-, service- and personnel differentiation. The theoretical framework gives an overview of the differentiation strategies; it also provides the reader a description of branding, consumer decision process, competitive advantage, strategic customer and key competitors.In the analysis chapter the differentiations strategies will be combined with the empirical information gained through personal interviews with the managers of Zara. The conclusion will provide an answer to research question and some advice for improvement.