A company is able to maintain dominance in a product market by:
A)keeping its costs lower than other companies.
B)raising market demand.
C)successfully differentiating its product.
D)relying on relationship-specific investments.

Question

Quizplus · Accepted Answer

Successfully differentiating a product allows a company to offer unique features or benefits that cannot be easily replicated by competitors, which can help maintain dominance in the market. Keeping costs lower than other companies can be a short-term strategy but may not be sustainable in the long run. Raising market demand can benefit all companies in the market, not just one. Relying on relationship-specific investments is not a commonly used strategy for maintaining dominance in a product market.

A Company Is Able to Maintain Dominance in a Product