But take a shirt and turn it into an image (a promise of hipness, say), aim it at a specific customer segment (such as young Filipinos in Hong Kong), and display it to them in the right setting and with enthusiastic service, and you have both differentiation and a winning business model.
The power of a repeatable model lies in the way it turns the sources of differentiation into routines, behaviors, and activity systems that everyone in the organization can understand and follow so that when a company sets on a particular path, it knows how to maintain differentiation that led to its initial success.