The differentiation strategy can be effective in controlling the power of rivalry in an industry because:
A) customers will seek out the lowest cost product.
B) customers have no loyalty.
C) customers are loyal to brands that are differentiated in meaningful ways.
D) the differentiation strategy benefits from rivalry.

Question

Quizplus · Accepted Answer

Customers who are loyal to brands that are differentiated in meaningful ways are less likely to be swayed by the price or features of competing products. This makes it harder for rival firms to win customers away and reduces the intensity of rivalry in the industry. The differentiation strategy relies on creating unique and valuable features that appeal to customers and set a company apart from competitors.

The Differentiation Strategy Can Be Effective in Controlling the Power