The Differentiation Strategy Can Be Effective in Controlling the Power

question 123

Multiple Choice

The differentiation strategy can be effective in controlling the power of rivalry with existing competitors in an industry because:

• A) customers will seek out the lowest-cost product.
• B) customers of nondifferentiated products are sensitive to price increases.
• C) customers are loyal to brands that are differentiated in meaningful ways.
• D) the differentiation strategy benefits from rivalry because it forces the firm to innovate.

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Definitions:

Inoculate

in a non-medical context, means to protect or prepare someone in advance against adverse conditions or criticism.

Resilient

The ability to quickly recover from difficulties; toughness and adaptability in the face of adversity.

Vulnerable

Exposed to the possibility of being attacked or harmed, either physically or emotionally.

Vision

A mental image or foresight of what an organization or individual aims to achieve in the future, guiding strategy development and decision making.