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)Firms will enjoy high customer loyalty.
B)By increasing firm margins, it avoids the need for a low cost position.
C)It reduces buyer power because buyers lack comparable alternatives.
D)Supplier power is increased, because suppliers will be able to charge higher prices for their inputs.

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