Which of the following is FALSE regarding how a differentiation strategy can help a firm to improve its competitive position relative to the Porter five forces model?
A) By increasing firm margins, it avoids the need for a low cost position.
B) It reduces buyer power because buyers lack comparable alternatives.
C) Supplier power is increased, because suppliers will be able to charge higher prices for their inputs.
D) Firms will enjoy high customer loyalty.

Question

Quizplus · Accepted Answer

Supplier power is also decreased, because there is a certain amount of prestige associated with being the supplier to a producer of highly differentiated products and services.

Which of the Following Is FALSE Regarding How a Differentiation