New ventures may find it difficult to use differentiation strategies successfully because they lack ________ and ________.
A) sufficient funding; superior innovation
B) competitors; superior technology
C) sufficient funding; qualified entrepreneurs
D) innovative ideas; potential customers

Question

Quizplus · Accepted Answer

There are several factors that make it more difficult for new ventures to be successful as differentiators. For one thing, the strategy is generally thought to be expensive to enact. Differentiation is often associated with strong brand identity, and establishing a brand is usually considered to be expensive because of the cost of advertising and promotion, paid endorsements, exceptional customer service, etc. Differentiation successes are sometimes built on superior innovation or use of technology.

New Ventures May Find It Difficult to Use Differentiation Strategies