Differentiation provides lower margins that enable a firm to deal with supplier power.

Name: Differentiation provides lower margins that enable a firm to deal with supplier power.
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Question

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Differentiation typically allows a firm to charge higher prices for its unique products or services, potentially leading to higher margins, not lower. This can give the firm more leverage to absorb supplier power because it can pass on higher costs to customers due to the perceived value of its differentiated offerings.

Differentiation Provides Lower Margins That Enable a Firm to Deal