A differentiation strategy can be effective in controlling the power of substitutes in an industry because:
A) buyers are not brand loyal.
B) substitute products are from a different industry.
C) customers want the low-cost product.
D) customers are loyal to a brand offering differentiated features that they value.

Question

Quizplus · Accepted Answer

A differentiation strategy involves offering unique and valuable features or benefits that are not easily replicated by substitutes. This can create brand loyalty and make customers less likely to switch to substitute products. Therefore, customers who value the differentiated features of a brand are less likely to be swayed by the availability of substitutes in the industry.

A Differentiation Strategy Can Be Effective in Controlling the Power