Differentiation improves a firm's competitive position by:
A) increasing the buyer's power
B) creating high entry barriers
C) providing buyer's with comparable alternatives
D) creating the need for a low-cost position

Question

Quizplus · Accepted Answer

Differentiation can improve a firm's competitive position by creating high entry barriers. When a firm successfully differentiates its products or services, it can command a premium price, build brand loyalty, and make it harder for new entrants to compete directly without significant investment or innovation.

Differentiation Improves a Firm's Competitive Position By