One risk of the differentiation strategy is that:
A) a competitor may generate process innovations.
B) equipment may quickly become obsolete.
C) the firm may offer differentiated features that exceed the customers' needs.
D) the firm may fail to detect competitors' efforts to differentiate the commodity product.

Question

Quizplus · Accepted Answer

Differentiation strategy focuses on offering unique features, but if these features exceed customer needs, it can lead to unnecessary costs without added value, making the strategy risky.

One Risk of the Differentiation Strategy Is That